The Park is closed (1st edition)

Foiled. I just wanted to walk on the Hudson.

Away from the traffic.

But one of my favorite agencies, NYSOPRHP, thinks I shouldn't do this after work. CLOSED

Happily, I found a better place. Or open at least.

And this is supposed to be a developed country we live in.

ECON 340/ENVA 300: Exam 2 Review

Exam 2 Review

The exam will be closed book, but do bring a calculator. There will be lots of emphasis on DOING the various examples we've worked on in class. The exam focuses on material since the first exam: see both the original and revised course outline for specifics.
Here is my outline for the exam:
1. Climate footprint: work through a problem on how a change in behavior changes carbon emissions.
2. Why do environmental problems occur? Use the idea of externalities.
3. Discount a stream of future benefits.
4. Complete a simple benefit cost example.
5. Summarize the basic conclusion of the Stern Review of Climate, "mainstream" conclusions in the economics literature on addressing climate change, and Weitzman's critique of the Stern Review.
6. Outline Lomborg's basic argument and rhetorical approach (McKibben helps understand this) that we should not commit to costly policies to reduce climate impacts, at least at this time.
7. Illustrate the idea of increasing abatement costs on a graph.
8. What does the equimarginal principle mean? Illustrate on a graph.
9. What is the basic idea of an emission standard?
10. What is the basic idea of how pollution taxes work?
11. How does cap and trade work?
12. Which policy is not consistent with the equimarginal principle? Consequence?
13. Show behavior under each of these policies given a numerical example (i.e. given an abatement cost schedule for two firms.)
14. Show consequences: cost-effectiveness/efficiency and equity.
15. What do weak and strong sustainability mean? Implications for climate?

ECON 300/ENVA 340

(from OECD Glossary of Statistical Terms)

Weak Sustainability

All forms of capital are more or less substitutes for one another; no regard has to be given to the composition of the stock of capital. Weak sustainability allows for the depletion or degradation of natural resources, so long as such depletion is offset by increases in the stocks of other forms of capital (for example, by investing royalties from depleting mineral reserves in factories).

Strong Sustainability

All forms of capital must be maintained intact independent of one another. The implicit assumption is that different forms of capital are mainly complementary; that is, all forms are generally necessary for any form to be of value. Produced capital used in harvesting and processing timber, for example, is of no value in the absence of stocks of timber to harvest. Only by maintaining both natural and produced capital stocks intact can non-declining income be assured.


Source Publication:
United Nations, European Commission, International Monetary Fund, Organisation for Economic Co-operation and Development, World Bank, 2005, Handbook of National Accounting: Integrated Environmental and Economic Accounting 2003, Studies in Methods, Series F, No.61, Rev.1, Glossary, United Nations, New York, para. 1.27.