environmental economics 17
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Environmental Economics
Essay Questions, answer all.
If I can’t read it, it’s wrong.
(I expect a good answer will require 1 page for each question)
- A) Describe how a resource depletion tax can be used to maximize economic efficiency over time. Use a market graph to support your explanation. B) What is Hotelling’s rule? Include an explanation of how a change in the interest rate will affect the price of a resource over time.
- A) Suppose a proposal is made to construct a new interstate highway through a plot of undisturbed land. Briefly summarize how you would use cost-benefit analysis to evaluate this proposal. B) What economic techniques would you use to assess some of the environmental impacts?
- A) Use a supply and demand graph to show how the elasticity of supply affects price when food demand increases. Would we expect prices to increase more if the elasticity of supply is high or low? Why? B) Describe how the COVID-19 outbreak might impact food prices.
- A) List and describe three demand-side water management policies. B) Discuss why eliminating water subsidies would increase water conservation and improve overall social welfare. Use a supply and demand graph to support your answer.
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