Assignment
Length: 1000 words per question, 2000 words overall
Question 1. Choose oneof the following environmental issues:
• Noxious odours emitted from a waste water treatment plant;
• Siting of a new international airport in an area of rare natural habitat;
• Marine algal blooms caused by nutrient run-off from sugar-cane production.
a) For your chosen issue describe a method (or methods) which could be used to value the problems that these issues cause. Explain how these methods operate, describe how they might be used in these cases and explain what types of values they can elicit.
b) Carefully set out the problems associated with the methods chosen as well as their possible advantages over other methodologies.
Question 2.
a) Explain how marginal control costs are equalised across firms under a transferable pollution permit system (also known as an emissions trading scheme) using a diagram to illustrate your answer.
b) What advantage does the equalisation of marginal control costs give this system over command and control methods of controlling pollution?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.