Question 1

The Clean Air Interstate Rule (CAIR) included an annual SO2 trading program.

Accepted Answer

A) True 
 B)False  True

Question 2

Suppose the Clean Air Act calls for a rise in NO2 abatement (A) from 50 to 60 percent and that the MSC (in millions) is MSC = 12 + 0.8A, where A is measured in percent. Then, the incremental cost of this policy change is

Accepted Answer

A)  $8 million 
B)  $40 million 
C)  $560 million 
D)  $500 million 
A)  $8 million 
B)  $40 million 
C)  $560 million 
D)  $500 million C

Question 3

In an allowance market, buyers will purchase allowances as long as the price is higher than their MAC, which results in a cost-effective solution.

Accepted Answer

A) True 
 B)False  False

Question 4

NOX contributes both to acid rain and to the formation of ground-level ozone.

Accepted Answer

A) True 
 B)False

Question 5

Consider the following two statements to answer this question: (1) The bubble policy allows a facility to measure its emissions as an average of all emission points from that facility.
(2) Netting was developed as a trading program to control emissions in PSD areas.

Accepted Answer

A)  (1) is true and (2) is false 
B)  both (1) and (2) are false 
C)  (1) is false and (2) is true 
D)  both (1) and (2) are true 
A)  (1) is true and (2) is false 
B)  both (1) and (2) are false 
C)  (1) is false and (2) is true 
D)  both (1) and (2) are true

Question 6

Using the labels on the graph below, the total cost for both firms at the cost-effective solution is ________, and the excess cost from using the uniform standard is___________

Accepted Answer

A)  ABCGH; CGH 
B)  ACH; CGH 
C)  ACDEH; CDE 
D)  ACH; CDE   
A)  ABCGH; CGH 
B)  ACH; CGH 
C)  ACDEH; CDE 
D)  ACH; CDE

Question 7

Overall, empirical studies fail to support the claim that command-and-control policy is more costly to implement than more flexible approaches.

Accepted Answer

A) True 
 B)False

Question 8

China's acid rain problem is relatively minor because it is among the lowest consumers of coal in the world.

Accepted Answer

A) True 
 B)False

Question 9

Under the cap-and-trade program established under Title IV of the Clean Air Act Amendments of 1990, a permanent annual cap for SO2 was set and tradeable SO2 allowances were issued to stationary sources.

Accepted Answer

A) True 
 B)False

Question 10

The GHG permitting requirements

Accepted Answer

A)  are applicable to both mobile and stationary sources 
B)  will not be in force until 2016 
C)  are part of the New Source Review requirements 
D)  all of the above 
A)  are applicable to both mobile and stationary sources 
B)  will not be in force until 2016 
C)  are part of the New Source Review requirements 
D)  all of the above

Question 11

Technology-based standards used to control new sources are more lenient than those used to control existing stationary sources.

Accepted Answer

A) True 
 B)False

Question 12

Under a bubble policy, a facility is allowed to measure its emissions as an average of all releases from that facility.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is INCORRECT?

Accepted Answer

A)  Emissions limits in PSD areas are more stringent than those in nonattainment areas 
B)  New Source Performance Standards are technology-based and defined by the EPA 
C)  Emissions limits for existing sources are more lenient than for new sources 
D)  Technology-based standards used to control stationary sources are applied uniformly 
A)  Emissions limits in PSD areas are more stringent than those in nonattainment areas 
B)  New Source Performance Standards are technology-based and defined by the EPA 
C)  Emissions limits for existing sources are more lenient than for new sources 
D)  Technology-based standards used to control stationary sources are applied uniformly

Question 14

Suppose that there are only two stationary sources in a given air quality region. The first source has been in existence for several years, while the second source is new. The following functions represent marginal abatement costs (MAC) for each polluting source:
MACS1U1B1EXS1U1B0 = 10.0 + 0.7AS1U1B1 EXS1U1B0, MACS1U1B1NS1U1B0 = 9.2 + 0.5AS1U1B1 NS1U1B0,
where AS1U1B1EXS1U1B0 is the percentage abatement level for the existing source, and AS1U1B1NS1U1B0 is the percentage abatement level for the new source.
Assume that the aggregate abatement standard (i.e., for the region as a whole) is set at 40 percent and that the two firms' current abatement levels are AS1U1B1EXS1U1B0 = 10 and AS1U1B1NS1U1B0 = 30.
-Find the cost effective allocation of abatement across the two sources that also satisfies the 40 percent aggregate abatement level. Support with calculations.

Accepted Answer

2. To find the cost effective allocation

Question 15

The cost-effective solution is:

Accepted Answer

A)  Ax = 15; Ay = 15 
B)  Ax = 9; Ay = 4.5 
C)  Ax = 10; Ay = 20 
D)  none of the above 
A)  Ax = 15; Ay = 15 
B)  Ax = 9; Ay = 4.5 
C)  Ax = 10; Ay = 20 
D)  none of the above

Question 16

According to the newly established GHG regulations, new or modified stationary sources of GHGs

Accepted Answer

A)  would immediately face stringent emissions limits, regardless of their contribution to GHG emissions 
B)  would be subject to the New Source Review requirements 
C)  are required to eliminate all GHG emissions 
D)  none of the above 
A)  would immediately face stringent emissions limits, regardless of their contribution to GHG emissions 
B)  would be subject to the New Source Review requirements 
C)  are required to eliminate all GHG emissions 
D)  none of the above

Question 17

Emissions limits used for nonattainment areas are more stringent than those used for PSD areas.

Accepted Answer

A) True 
 B)False

Question 18

The dual-control approach refers to

Accepted Answer

A)  dual trading programs, one for sulfur dioxide and one for nitrogen oxides 
B)  different standards used in PSD areas versus nonattainment areas 
C)  the netting program and the offset program 
D)  state control of existing sources and federal control of new or modified sources 
A)  dual trading programs, one for sulfur dioxide and one for nitrogen oxides 
B)  different standards used in PSD areas versus nonattainment areas 
C)  the netting program and the offset program 
D)  state control of existing sources and federal control of new or modified sources

Question 19

Under the Acid Rain Program (ARP) as initially outlined in the CAAA of 1990, a cap-and-trade allowance program was established for both SO2 and NOX.

Accepted Answer

A) True 
 B)False

Question 20

Because NOX readily moves across state borders, a series of interstate collaborations formed over time to address the problem, but none established a trading program.

Accepted Answer

A) True 
 B)False

The Clean Air Interstate Rule (CAIR) included an annual SO₂ trading program.

Suppose the Clean Air Act calls for a rise in NO₂ abatement (A) from 50 to 60 percent and that the MSC (in millions) is MSC = 12 + 0.8A, where A is measured in percent. Then, the incremental cost of this policy change is

In an allowance market, buyers will purchase allowances as long as the price is higher than their MAC, which results in a cost-effective solution.

NO_X contributes both to acid rain and to the formation of ground-level ozone.

Consider the following two statements to answer this question: (1) The bubble policy allows a facility to measure its emissions as an average of all emission points from that facility. (2) Netting was developed as a trading program to control emissions in PSD areas.

Using the labels on the graph below, the total cost for both firms at the cost-effective solution is , and the excess cost from using the uniform standard is___

Overall, empirical studies fail to support the claim that command-and-control policy is more costly to implement than more flexible approaches.

China's acid rain problem is relatively minor because it is among the lowest consumers of coal in the world.

Under the cap-and-trade program established under Title IV of the Clean Air Act Amendments of 1990, a permanent annual cap for SO₂ was set and tradeable SO₂ allowances were issued to stationary sources.

The GHG permitting requirements

Technology-based standards used to control new sources are more lenient than those used to control existing stationary sources.

Under a bubble policy, a facility is allowed to measure its emissions as an average of all releases from that facility.

Which of the following is INCORRECT?

The cost-effective solution is:

According to the newly established GHG regulations, new or modified stationary sources of GHGs

Emissions limits used for nonattainment areas are more stringent than those used for PSD areas.

The dual-control approach refers to

Under the Acid Rain Program (ARP) as initially outlined in the CAAA of 1990, a cap-and-trade allowance program was established for both SO₂ and NO_X.

Because NO_X readily moves across state borders, a series of interstate collaborations formed over time to address the problem, but none established a trading program.

The Role of Economics in Environmental Management

Modeling the Market Process: a Review of the Basics

Modeling Market Failure

Conventional Solutions to Environmental Problems: Command-And-Control Approach

Economic Solutions to Environmental Problems: the Market Approach

Environmental Risk Analysis

Assessing Benefits for Environmental Decision Making

Assessing Costs for Environmental Decision Making

Benefit-Cost Analysis in Environmental Decision Making

Defining Air Quality: the Standard-Setting Process

Improving Air Quality: Controlling Mobile Sources

Global Air Quality: Policies for Ozone Depletion and Climate Change

Defining Water Quality: the Standard-Setting Process

Improving Water Quality: Controlling Point and Nonpoint Sources

Protecting Safe Drinking Water

Managing Hazardous Solid Waste and Waste Sites

Managing Municipal Solid Waste

Controlling Pesticides and Toxic Chemicals

Sustainable Development: International Environmental Agreements and International Trade

Sustainable Approaches: Industrial Ecology and Pollution Prevention

Filters

Exam 12: Improving Air Quality: Controlling Stationary Sources

The Clean Air Interstate Rule (CAIR) included an annual SO2 trading program.

Suppose the Clean Air Act calls for a rise in NO2 abatement (A) from 50 to 60 percent and that the MSC (in millions) is MSC = 12 + 0.8A, where A is measured in percent. Then, the incremental cost of this policy change is

In an allowance market, buyers will purchase allowances as long as the price is higher than their MAC, which results in a cost-effective solution.

NOX contributes both to acid rain and to the formation of ground-level ozone.

Consider the following two statements to answer this question: (1) The bubble policy allows a facility to measure its emissions as an average of all emission points from that facility. (2) Netting was developed as a trading program to control emissions in PSD areas.

Using the labels on the graph below, the total cost for both firms at the cost-effective solution is ________, and the excess cost from using the uniform standard is___________

Overall, empirical studies fail to support the claim that command-and-control policy is more costly to implement than more flexible approaches.

China's acid rain problem is relatively minor because it is among the lowest consumers of coal in the world.

Under the cap-and-trade program established under Title IV of the Clean Air Act Amendments of 1990, a permanent annual cap for SO2 was set and tradeable SO2 allowances were issued to stationary sources.

The GHG permitting requirements

Technology-based standards used to control new sources are more lenient than those used to control existing stationary sources.

Under a bubble policy, a facility is allowed to measure its emissions as an average of all releases from that facility.

Which of the following is INCORRECT?

The cost-effective solution is:

According to the newly established GHG regulations, new or modified stationary sources of GHGs

Emissions limits used for nonattainment areas are more stringent than those used for PSD areas.

The dual-control approach refers to

Under the Acid Rain Program (ARP) as initially outlined in the CAAA of 1990, a cap-and-trade allowance program was established for both SO2 and NOX.

Because NOX readily moves across state borders, a series of interstate collaborations formed over time to address the problem, but none established a trading program.

The Role of Economics in Environmental Management

Modeling the Market Process: a Review of the Basics

Modeling Market Failure

Conventional Solutions to Environmental Problems: Command-And-Control Approach

Economic Solutions to Environmental Problems: the Market Approach

Environmental Risk Analysis

Assessing Benefits for Environmental Decision Making

Assessing Costs for Environmental Decision Making

Benefit-Cost Analysis in Environmental Decision Making

Defining Air Quality: the Standard-Setting Process

Improving Air Quality: Controlling Mobile Sources

Global Air Quality: Policies for Ozone Depletion and Climate Change

Defining Water Quality: the Standard-Setting Process

Improving Water Quality: Controlling Point and Nonpoint Sources

Protecting Safe Drinking Water

Managing Hazardous Solid Waste and Waste Sites

Managing Municipal Solid Waste

Controlling Pesticides and Toxic Chemicals

Sustainable Development: International Environmental Agreements and International Trade

Sustainable Approaches: Industrial Ecology and Pollution Prevention

Filters

The Clean Air Interstate Rule (CAIR) included an annual SO₂ trading program.

Suppose the Clean Air Act calls for a rise in NO₂ abatement (A) from 50 to 60 percent and that the MSC (in millions) is MSC = 12 + 0.8A, where A is measured in percent. Then, the incremental cost of this policy change is

NO_X contributes both to acid rain and to the formation of ground-level ozone.

Using the labels on the graph below, the total cost for both firms at the cost-effective solution is , and the excess cost from using the uniform standard is___

Under the cap-and-trade program established under Title IV of the Clean Air Act Amendments of 1990, a permanent annual cap for SO₂ was set and tradeable SO₂ allowances were issued to stationary sources.

Under the Acid Rain Program (ARP) as initially outlined in the CAAA of 1990, a cap-and-trade allowance program was established for both SO₂ and NO_X.

Because NO_X readily moves across state borders, a series of interstate collaborations formed over time to address the problem, but none established a trading program.