Assignment
1. Describe cost and benefit categories for a topic you are interested in to apply cost-benefit analysis (CBA) for helping with a decision. What valuation methods will you plan to use? If you end up using an existing CBA, cite it along with other references for the valuation methods you discuss.
2. Describe how the enforcement, monitoring and compliance steps from the State of Virginia Department of Environmental Quality's Enforcement Branch head (from lecture notes) has described compare to the textbook description of economic incentives and trends described by Gray and Shimshack's article.
3. Below are numbers indicating benefits and costs to Country A of taking actions on an international agreement to reduce ozone depleting substances. The choice is either to adhere to the ozone depleting chemical substance cutbacks called for by the Montreal Protocol or to disregard the Protocol.
Costs Benefits Net Benefits
All countries adhere to agreement 10 20 10
No countries adhere to agreement 0 -5 -5
Other countries adhere to agreement & Country A does not 0 19 19
What is the incentive for Country A to free ride on the abatement efforts of other countries? If all countries become free riders, what is the result?
Other than financial incentives, how might industrialized countries help developing countries to control ozone depletion? (base on Protocol for ozone depleting substances or the new policy on hydrofluorocarbons).
4. From the examples you given in the realm of information provision (mandatory or voluntary) such as the Right to Know for Drinking Water and among others provide a brief summary in terms of which incentives may influence any change in pollution control or reduction. Do they succeed in overcoming market failure of imperfect information? Explain your answer with evidence.
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.