Critically evaluates the concept of an “optimal” level of pollution

Q1 Critically evaluates
the concept of an “optimal” level of pollution, and discusses how economic
instruments can be used to achieve this. ( 40 marks)
Can
use the following to answer:
Coverage
of marginal costs of pollution damage and marginal costs of pollution
abatement- can use diagram
Economic
idea of optimal pollution level, which may be disputed by environmentalists
Externalities
(Pigou approach)
Polluter
Pays PrincipleInstruments: Explanation of various methods,
with emphasis on the move from command and control to market based instruments.
Firms
with differing abatement costs.
Tradable
permits, pollution taxes.
Examples
can be used.

Q3. Evaluate the
economic case for taking radical policy measures to avert climate change. Refer
to the effectiveness of the EU emissions trading system in your answer. With
reference to the recommendations of the Stern Report (2006), consider the
economic case for taking radical policy action to avoid climate change. (40
marks)
Can
use the following:
·
Greenhouse
gases and global climate
·
Dangers
of rising temperatures
·
Economic
impacts
·
Refer
to Stern Review (2006) and the key findings
·
Stern
Review attempts to quantify costs of climate change, and costs of reducing
emissions
·
Note-
there are summaries of the Stern Review
·
The
methods used in Stern Review should be discussed critically- especially the use
of discounting
·
Issues
of uncertainty can also be highlighted
·
Problems
of Carbon tax and emissions trading
·
Abatement
costs from reducing emissions
·
Higher
energy bills
·
Investment
in new energy technologies
·
Lower
consumption
·
Compare
Damage Costs with Abatement Costs (can use diagram)

Order your essay today and save 30% with the discount code: KIWI20