Problem 1: Through the class we learned a lot about what to do to account for pollution and the techniques used to monetize benefits and cost attributed to the environment. Why is this potentially more of a problem with an economy which uses a market-based economics system (like in Canada) but not command type economies?
Problem 2: Could you explain, why property rights, and not who is responsible the main problem of environmental economics? How can government help in this issue?
Problem 3: Throughout the term we have constantly talked about marginal decisions. MSB and MSC were often used to talk about making choices (marginal social benefits and marginal social cost respectively). Why do we have to use the concept of marginal vs. total, when we study the impact of policy changes?
Provide an example of the difference between them?
Problem 4: This year, the provincial government announced that they would begin providing low income households free upgrades to low cost mini plit heating from oil. Can you explain why a benefit approach vs cost punish approach might be appropriate in this situation?
Problem 5: What type of problem would you expect with using the travel cost approach? What if you give the same survey to assess the value of cleaning raw sewage in two neighborhoods? One that is poor and houses low income families, while the other which houses predominantly doctors and expensive lawyers. Explain what the techniques entails, but also critique its use in this situation.
Problem 6: Yesterday, you were talking with your schoolmate over a soda. You got talking about how the can of aluminum soda that you drank out of would be recycled. Then you remembered reading a news article about how the cost of raw aluminum was in free fall. Should you expect for as much or less aluminum to be recycled and/or used in the making of new soda cans? Explain in words and by using a diagram.