Environmental Externalities and Resource Management Quiz

Negative externality: third-party harm from economic activity.

Coal: non-renewable resource due to finite availability.

Sustainable resource management aims to minimize environmental impact.

'Polluter pays principle': making polluters cover pollution costs.

Subsidies: incentivizing environmentally friendly behavior.

Nuclear energy is not renewable due to finite fuel availability.

Carbon footprint: measure of carbon dioxide emissions from human activities.

'Ecosystem services': benefits humans derive from natural ecosystems.

Tragedy of the commons: overuse leading to resource depletion.

Taxes: imposing costs on polluters to internalize externalities.

'Cap and trade': limit pollution, trade permits to reduce emissions.

Common-pool resources lack excludability, making exclusion difficult.

Positive externality: benefits to others from energy efficiency.

Overfishing in protected marine areas contradicts sustainable resource management.

Subsidies: addressing positive externalities through payments.

EIAs aim to prevent environmental degradation through assessment.

Policies are not a component of the 'triple bottom line' approach.

Paris Agreement aims to limit global warming below 2°C.

Tragedy of the anti-commons: underuse from excessive regulation.

Common property theory: communal ownership for sustainable resource management.

Externality: unintended impacts on third parties from economic activity.

Tragedy of the anticommons: underuse due to excessive regulation.

'Internalizing externalities': accounting for external effects in policy or markets.