Question

GofG Which of the following is a frequent barrier to the private resolution of externalities caused by pollution? a) The people affected by pollution usually own the associated property rights. b) Legal contracts are easy to draw up, making it easy to enforce agreements. c) There are uncertainties regarding the source and costs of pollution. d) All of the above The command-and-control strategy relies on a) voluntary exchange of pollution rights. b) engineering controls and pollution ceilings. c) the goodwill of firms to enforce pollution abatement upon themselves. d) the use of tradable permits to encourage pollution abatement Which of the following pollution abatement measures is used to control environmental problems in the United States today? a) Taxes on pollution b) Emissions charges c) Marketable permits d) All of the above

Answer 1

18. a) The people affected by pollution usually own the associated property rights.

By property rights we mean that the ownership of the resource or an economic good .

This seems to be a barrier to the private resolution of externalities caused by pollution. The externalities can be positive or negative.

19. b) engineering controls and pollution ceilings

The command and control strategy in relation with the regulation of the pollution levels include the authoritative body deciding the pollution ceilings by fixing a particular level of emissions and controlling the level of pollution by using engineering controls.

20. c) Marketable permits

The U. S neither have a tax on pollution not impose emission charges. They instead have marketable permits which can be traded depending upon the emission levels.