1 With regard to controlling pollution: Explain the difference between efficiency and cost-effectiveness.2 Compare and contrast the three means of controlling pollution; (1) command and control (CAC), (2) emissions charges, and (3) cap and trade. Which of these is cost effective (and why)?3 Assume there are n factories in a large valley that emit local pollutants. The Valley Air Quality District has determined the level of pollutants that the environment can tolerate and has issued Emissions Permits which can be sold. What would happen to the price of the permits if an additional factory were opened? What would happen to the total amount of pollution?4 AS in Question 3, Assume there are n factories in the valley that emit local pollutants. This time emissions charges are used instead of permits. If these charges never change, what happens to the amount of pollution if an additional factory opens?5 AS in Question 3, Assume there are n factories in the valley that emit local pollutants. The Valley Air Quality District has determined the maximum level of pollutants that the environment can tolerate. Which of the control strategies would you choose?6(1) AS in Question 3, Assume there are n factories in the valley that emit local pollutants. The Valley Air Quality District needs to design a regulatory system that guarantees that this limit is never exceeded, even if the number of pollution sources increases. Which of the regulation methods (CAC, charges, or tradable allowances) would be the most cost-effective means of achieving the desired end? How might your choice change if some increase in emissions could be tolerated?6. (2) If the factories in questions 3, 4 and 5 began emitting regional pollutants, which (f any) of the control strategies in these questions would remain effective? How would they need to change?7. What are some of the sources of inefficiency in the command and control approach taken by the EPA?8. Describe the strategies for addressing climate change that are implemented by the Kyoto protocol. What are some of the drawbacks of these provisions?
9. Discuss the “issue linkage” strategy.10. Why does the auto industry prefer uniform (national) standards for automobile emissions as opposed to regionally varying standards? Are uniform standards beneficial to everyone?11. Were the standards set by the Clean Air Act amendment of 1970 appropriate? If not how were the issues resolved?12. Describe the difference between the theories of strict liability and of negligence. If waste from of a hazardous material disposal site ended up in the ground water, even after the operator had taken all necessary precautions to prevent it, would the operator be liable for damages? If so, under which of the above theories would he be liable?13. How might the marketplace mitigate the risk to employees working in a hazardous environment. Under what circumstances might such mitigation not work? Do such mitigations relieve the employer from potential liability?14. From an economic standpoint, why might low income neighborhoods be attractive locations for hazardous waste storage sites?