Question 1

The Acid Rain Program (ARP) was defined in Title II of the Clean Air Act Amendments of 1990.

Accepted Answer

A) True 
 B)False

Question 2

Suppose Michigan's NOX abatement standard for existing (E) sources is 4 units and the EPA's standard for new (N) sources is 10 units and that MACE = 1.8AE and MACN = 1.2AN. To meet the same combined abatement level of 14 but in a cost-effective manner, the standards for each should be

Accepted Answer

A)  AE = 7; AN = 7 
B)  AE = 4.8; AN = 7.2 
C)  AE = 5.6; AN = 8.4 
D)  none of the above 
A)  AE = 7; AN = 7 
B)  AE = 4.8; AN = 7.2 
C)  AE = 5.6; AN = 8.4 
D)  none of the above

Question 3

Under the national Acid Rain Program (ARP)

Accepted Answer

A)  two phases were defined that began in 1980 
B)  a cap-and-trade program was defined only for SO2 
C)  a cap-and-trade program was defined for both SO2 and NOX 
D)  the EPA issued emission allowances that could be used or banked, but not traded 
A)  two phases were defined that began in 1980 
B)  a cap-and-trade program was defined only for SO2 
C)  a cap-and-trade program was defined for both SO2 and NOX 
D)  the EPA issued emission allowances that could be used or banked, but not traded

Question 4

Primary sources of SO2 emissions are

Accepted Answer

A)  fossil-fuel burning power plants and refineries 
B)  heavy-duty trucks and buses 
C)  light-duty trucks and automobiles 
D)  commercial aircraft 
A)  fossil-fuel burning power plants and refineries 
B)  heavy-duty trucks and buses 
C)  light-duty trucks and automobiles 
D)  commercial aircraft

Question 5

According to the dual-control approach, states set abatement levels for existing stationary sources below the EPA-administered standard for new sources. The "new source bias" associated with this approach is that

Accepted Answer

A)  firms have an incentive to shut down their businesses 
B)  states have an economic motive to set very stringent standards for existing sources 
C)  firms have an incentive not to start new construction and instead remain in older, existing facilities 
D)  the EPA has an incentive to set lenient standards for new sources 
A)  firms have an incentive to shut down their businesses 
B)  states have an economic motive to set very stringent standards for existing sources 
C)  firms have an incentive not to start new construction and instead remain in older, existing facilities 
D)  the EPA has an incentive to set lenient standards for new sources

Question 6

Acidic compounds are formed from a chemical reaction in the earth's atmosphere, involving sulfur dioxide, nitrogen oxide, water vapor, and oxidants.

Accepted Answer

A) True 
 B)False

Question 7

Two new NOX cap-and-trade programs were launched under the Clean Air Interstate Rule (CAIR).

Accepted Answer

A) True 
 B)False

Question 8

RECLAIM refers to

Accepted Answer

A)  one of the first state-level trading programs, which was developed in California 
B)  a federal program for stationary sources to earn credits for reducing pollution 
C)  a national program to refurbish older, polluting refineries 
D)  the claiming of SO2 allowances that have been banked in a prior period 
A)  one of the first state-level trading programs, which was developed in California 
B)  a federal program for stationary sources to earn credits for reducing pollution 
C)  a national program to refurbish older, polluting refineries 
D)  the claiming of SO2 allowances that have been banked in a prior period

Question 9

Relative to mobile sources, stationary sources are bigger emitters of sulfur oxides.

Accepted Answer

A) True 
 B)False

Question 10

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.
-Explain why the current abatement levels for the two sources do not achieve cost effectiveness.

Accepted Answer

1. In order for the individual abatement

Question 11

Based on available information about the annual auctions for SO2 allowances

Accepted Answer

A)  only the largest electric utilities are allowed to bid 
B)  allowance prices have been much higher than predicted 
C)  allowance prices are unrelated to energy prices 
D)  prices of SO2 allowances are lower than originally anticipated 
A)  only the largest electric utilities are allowed to bid 
B)  allowance prices have been much higher than predicted 
C)  allowance prices are unrelated to energy prices 
D)  prices of SO2 allowances are lower than originally anticipated

Question 12

Major sources of SO2 emissions are automobiles and other mobile sources.

Accepted Answer

A) True 
 B)False

Question 13

Because of the dual-control approach, emissions limits tend to be more stringent for newer facilities, creating a bias against building newer, and hence cleaner, facilities.

Accepted Answer

A) True 
 B)False

Question 14

Stationary source emissions are controlled primarily through the use of technology-based standards.

Accepted Answer

A) True 
 B)False

Question 15

According to the cost-effectiveness criterion, trading of SO2 allowances under the CAA should continue as long as MSBabatement > MSCabatement.

Accepted Answer

A) True 
 B)False

Question 16

The uniformity of technology-based standards is the characteristic that allows them to achieve cost-effectiveness.

Accepted Answer

A) True 
 B)False

Question 17

Of the two major pollutants responsible for acid rain, sulfur dioxide (SO2) is the more significant.

Accepted Answer

A) True 
 B)False

Question 18

Stationary source emissions currently are controlled primarily by

Accepted Answer

A)  performance-based limits 
B)  technology-based standards 
C)  the bubble policy 
D)  the OTC NOX Budget Program 
A)  performance-based limits 
B)  technology-based standards 
C)  the bubble policy 
D)  the OTC NOX Budget Program

Question 19

RECLAIM is a California trading program that used trading credits in a regional market for sulfur oxide and nitrogen oxide.

Accepted Answer

A) True 
 B)False

Question 20

Acid rain is a local pollution problem.

Accepted Answer

A) True 
 B)False

The Acid Rain Program (ARP) was defined in Title II of the Clean Air Act Amendments of 1990.

Suppose Michigan's NO_X abatement standard for existing (E) sources is 4 units and the EPA's standard for new (N) sources is 10 units and that MAC_E = 1.8A_E and MAC_N = 1.2A_N. To meet the same combined abatement level of 14 but in a cost-effective manner, the standards for each should be

Under the national Acid Rain Program (ARP)

Primary sources of SO₂ emissions are

According to the dual-control approach, states set abatement levels for existing stationary sources below the EPA-administered standard for new sources. The "new source bias" associated with this approach is that

Acidic compounds are formed from a chemical reaction in the earth's atmosphere, involving sulfur dioxide, nitrogen oxide, water vapor, and oxidants.

Two new NO_X cap-and-trade programs were launched under the Clean Air Interstate Rule (CAIR).

RECLAIM refers to

Relative to mobile sources, stationary sources are bigger emitters of sulfur oxides.

Based on available information about the annual auctions for SO₂ allowances

Major sources of SO₂ emissions are automobiles and other mobile sources.

Because of the dual-control approach, emissions limits tend to be more stringent for newer facilities, creating a bias against building newer, and hence cleaner, facilities.

Stationary source emissions are controlled primarily through the use of technology-based standards.

According to the cost-effectiveness criterion, trading of SO₂ allowances under the CAA should continue as long as MSB_abatement > MSC_abatement.

The uniformity of technology-based standards is the characteristic that allows them to achieve cost-effectiveness.

Of the two major pollutants responsible for acid rain, sulfur dioxide (SO₂) is the more significant.

Stationary source emissions currently are controlled primarily by

RECLAIM is a California trading program that used trading credits in a regional market for sulfur oxide and nitrogen oxide.

Acid rain is a local pollution problem.

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 Acid Rain Program (ARP) was defined in Title II of the Clean Air Act Amendments of 1990.

Suppose Michigan's NOX abatement standard for existing (E) sources is 4 units and the EPA's standard for new (N) sources is 10 units and that MACE = 1.8AE and MACN = 1.2AN. To meet the same combined abatement level of 14 but in a cost-effective manner, the standards for each should be

Under the national Acid Rain Program (ARP)

Primary sources of SO2 emissions are

According to the dual-control approach, states set abatement levels for existing stationary sources below the EPA-administered standard for new sources. The "new source bias" associated with this approach is that

Acidic compounds are formed from a chemical reaction in the earth's atmosphere, involving sulfur dioxide, nitrogen oxide, water vapor, and oxidants.

Two new NOX cap-and-trade programs were launched under the Clean Air Interstate Rule (CAIR).

RECLAIM refers to

Relative to mobile sources, stationary sources are bigger emitters of sulfur oxides.

Based on available information about the annual auctions for SO2 allowances

Major sources of SO2 emissions are automobiles and other mobile sources.

Because of the dual-control approach, emissions limits tend to be more stringent for newer facilities, creating a bias against building newer, and hence cleaner, facilities.

Stationary source emissions are controlled primarily through the use of technology-based standards.

According to the cost-effectiveness criterion, trading of SO2 allowances under the CAA should continue as long as MSBabatement > MSCabatement.

The uniformity of technology-based standards is the characteristic that allows them to achieve cost-effectiveness.

Of the two major pollutants responsible for acid rain, sulfur dioxide (SO2) is the more significant.

Stationary source emissions currently are controlled primarily by

RECLAIM is a California trading program that used trading credits in a regional market for sulfur oxide and nitrogen oxide.

Acid rain is a local pollution problem.

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

Suppose Michigan's NO_X abatement standard for existing (E) sources is 4 units and the EPA's standard for new (N) sources is 10 units and that MAC_E = 1.8A_E and MAC_N = 1.2A_N. To meet the same combined abatement level of 14 but in a cost-effective manner, the standards for each should be

Primary sources of SO₂ emissions are

Two new NO_X cap-and-trade programs were launched under the Clean Air Interstate Rule (CAIR).

Based on available information about the annual auctions for SO₂ allowances

Major sources of SO₂ emissions are automobiles and other mobile sources.

According to the cost-effectiveness criterion, trading of SO₂ allowances under the CAA should continue as long as MSB_abatement > MSC_abatement.

Of the two major pollutants responsible for acid rain, sulfur dioxide (SO₂) is the more significant.