#1
Which of the following is a characteristic of a market-based solution in environmental economics?
Creating economic incentives for environmentally friendly behavior
ExplanationMarket-based solutions incentivize eco-friendly actions through economic mechanisms.
#2
What is the concept of 'polluter pays principle' in environmental economics?
The principle that those who pollute should bear the costs of managing their pollution
ExplanationThe polluter pays principle assigns responsibility for pollution cleanup to polluters.
#3
What is the concept of 'carbon offsetting'?
The practice of investing in projects that reduce greenhouse gas emissions to compensate for one's own emissions
ExplanationCarbon offsetting involves investing in emission reduction projects to counterbalance one's own carbon emissions.
#4
What is the concept of 'externality' in environmental economics?
The cost or benefit that affects a party who did not choose to incur that cost or benefit
ExplanationExternalities in environmental economics are impacts on parties not involved in a transaction's decision-making.
#5
What is the primary objective of environmental economics?
To achieve environmental sustainability while promoting economic welfare
ExplanationEnvironmental economics aims to balance ecological preservation with economic prosperity.
#6
What is the primary goal of a cap-and-trade system?
To establish a maximum level of pollution that can be emitted
ExplanationCap-and-trade aims to set a limit on pollution emissions.
#7
Which of the following is an example of a market-based instrument for addressing environmental issues?
Implementing a carbon tax
ExplanationA carbon tax is a market-driven approach to tackle environmental problems.
#8
What is the 'tragedy of the commons'?
A situation where private owners of resources exploit them for individual gain, depleting the resource
ExplanationPrivate exploitation of shared resources leads to their depletion, known as the tragedy of the commons.
#9
What is the primary purpose of an environmental impact assessment (EIA)?
To assess the potential environmental effects of proposed projects
ExplanationEIAs evaluate the environmental impacts of proposed projects.
#10
Which of the following is an example of a non-market valuation method used in environmental economics?
Travel cost method
ExplanationNon-market valuation, like the travel cost method, assigns value to environmental goods and services.
#11
What is the concept of 'greenwashing'?
The deceptive promotion of environmentally friendly practices by a company
ExplanationGreenwashing involves falsely presenting environmentally harmful actions as eco-friendly.
#12
What is an externality in the context of environmental economics?
A cost or benefit that affects a party who did not choose to incur that cost or benefit
ExplanationExternalities are costs or benefits affecting parties not involved in the transaction.
#13
What is the relationship between environmental economics and sustainable development?
Sustainable development seeks to balance economic, social, and environmental goals, while environmental economics focuses solely on economic aspects
ExplanationSustainable development integrates economic, social, and environmental goals, whereas environmental economics concentrates on economic dimensions.
#14
What is the concept of 'incentive-based regulation'?
A regulatory approach that uses economic incentives to encourage desired behavior
ExplanationIncentive-based regulation employs economic rewards or penalties to induce desired actions.
#15
Which of the following is a characteristic of a green tax?
It is a tax imposed on activities or products that cause environmental damage
ExplanationGreen taxes target environmentally harmful activities or products through taxation.
#16
What is the role of cost-benefit analysis in environmental decision-making?
To evaluate the monetary value of environmental benefits and costs
ExplanationCost-benefit analysis assesses the economic worth of environmental actions by weighing their costs and benefits.