Question 1:
(a) Distinguish between the travel cost method and the hedonic method to value the environment.
(b) Explain fully how you would conduct a travel cost survey to estimate the value of recreational services of a beach.
(c) Explain the rationale for discounting the future in environmental resource management.
Question 2:
Transboundary pollution problems are instances of pollution involving the actions of more than one country. One example is the emission of carbon which is causing global warming.
(a) Explain fully how transboundary pollution is characterised as a problem of international externalities.
(b) The introduction of tradable permits has been advanced as a possible solution to the problem of global warming.
(i) Explain how tradable permits are expected to function.
(ii) Discuss the effectiveness of introducing tradable permits as a climate policy.