NAME AND SURNAME: LIHLE MTSHAGI

STUDENT NUMBER: 12162051

MODULE CODE: ECS2606
UNIQUE CODE: 583488
ASSIGNMENT NUMBER: 02
DUE DATE: 20 SEPTEMBER

LIST OF TABLE CONTENTS

PAGE 1…………. Cover page
PAGE 2………. Introduction
PAGE 3………….QUESTION 1
PAGE 4 ………… QUESTION 2
PAGE 5………….. QUESTION 3
PAGE 6……………QUESTION 4
PAGE 7…………… REFERENCE
PAGE 8……………… Declaration
Introduction
The application of economic ideas to the study of environmental resource management
is known as environmental economics. Microeconomics, which studies the behavior of
individuals and small groups, and macroeconomics, which studies the economic
performance of economies as a whole, are the two subfields of economics. Although it
takes more cues from microeconomics than from macroeconomics, environmental
economics incorporates elements from both fields.
Its main focus is on the process and motivations behind human decisions that affect the
environment. It also looks at how economic structures and regulations may be adjusted
to better balance the requirements of the ecosystem and human needs with these
environmental effects. Thus, familiarizing ourselves with some of the fundamental
concepts and analytical instruments of microeconomics should be among our initial
tasks. However, doing so right now runs the risk of suggesting that the purposes of the
instruments are more significant than their own.
QUESTION 1
The idea of more fully integrating IB strategies into environmental policies has long
been supported by environmental economics. In many situations, this can help give
environmental regulations greater teeth and significantly increase their cost-
effectiveness. They are particularly crucial to take into account while tackling the
challenging challenge of lowering greenhouse gas emissions (GHG). But remember
what was previously stated: no one policy type is likely to be the best in every situation.
IB regulations are not an exemption. Both their strengths and shortcomings are present.
In many situations, the strengths are powerful enough to promote increased
dependence on them. However, they might not be as effective as other strategies for a
variety of environmental issues.
It was never taken up. Businesses accountable for emissions are required to pay for all
other inputs utilized in their operations as well as the essential services provided by the
environment, such as transportation, dilution, chemical breakdown, and so on, when an
emission charge is implemented. Additionally, they will now have an incentive to employ
fewer environmental services, just as they have historically done with scarce labor and
other traditional production inputs.

The ability of effluent charges to manage various emission sources in a fashion that
complies with the equimarginal principle may be the best argument in favor of their
implementation. Marginal abatement costs will automatically equalize across all sources
if the same tax rate is applied to various sources with various marginal abatement cost
functions and each source lowers its emissions until its marginal abatement costs equal
the tax.
QUESTION 2
Emission standards are never-exceed thresholds that are directly related to the amount
of emissions originating from sources of pollution. Standards for emissions, also known
as effluent, are typically stated in terms of the amount of material per unit of time, such
as grams per minute or tons per week. Standards on "instantaneous" rates of flow could
apply to continuous emissions streams. These could include upper limitations on the
amount of residuals that flow each minute or on the average residuals flow over a given
amount of time. These are referred to as "performance standards" at times.
There are several different ways to create emission standards. As an illustration: 1.
Emission rate (in pounds per hour, for example). 2. Emission concentration (e.g.,
wastewater's BOD, or parts per million of biochemical oxygen demand). 3. Total
residual quantity (disposal rate multiplied by concentration multiplied by duration
QUESTION 3
An rise in a nation's economy over time is referred to as economic growth. The gross
domestic product (GDP), or the entire amount of goods and services produced within an
economy, is commonly used to gauge the size of that economy. There are two ways to
estimate economic growth: "nominal" and "real." The term "nominal economic growth"
describes the gradual rise in the dollar value of production. This covers adjustments to
the amount produced as well as the cost of the goods and services produced. When
discussing economic growth, economists typically refer to real growth, which eliminates
the impact of price fluctuations and only considers gains in production volume.
The Australian Bureau of Statistics (ABS) gathers information from individuals,
businesses, and governmental organizations each quarter in order to calculate GDP.
The ABS then uses three different methods to calculate GDP, examining data on
production (P), income (I), and spending (E) independently. There are three ways to
define GDP: GDP(P): the total added value of the produced products and services
GDP(I) is the total revenue produced by enterprises and employees (plus taxes less
subsidies).
The Australian Bureau of Statistics (ABS) gathers information from individuals,
businesses, and governmental organizations each quarter in order to calculate GDP.
The ABS then uses three different methods to calculate GDP, examining data on
production (P), income (I), and spending (E) independently. There are three ways to
define GDP: GDP(P): the total added value of the produced products and services
GDP(I) is the total revenue produced by enterprises and employees (plus taxes less
subsidies).
Economic growth frequently results in more environmental deterioration at lower income
levels because of increasing levels of industrialization, pollution, and resource
extraction. But as economic levels rise, so does society's concern for the environment,
which prompts the introduction of laws, the development of new technologies, and the
adoption of greener manufacturing methods. In the end, this leads to a decrease in
environmental deterioration.
An EKC graph characteristic to this relationship can be used. The environmental
degradation is represented by the y-axis, and income or economic growth is
represented by the x-axis. The graph first indicates a positive correlation between
income and environmental deterioration. However, as wealth rises, there comes a
turning point when environmental degradation begins to decline.
QUESTION 4
When we talk about technology transfer, we mean the movement of knowledge and
expertise from industrialized to developing nations, with the aim of promoting economic
growth while minimizing environmental effects. The information transmission that
developing country citizens themselves can modify to fit their local requirements and
operational methods is the main focus. One key idea in economic development is
technology transfer.
However, given the increased knowledge of the severity of the environmental issues
developing nations face, it has become even more urgent. Technology transfer is the
process of making technology available to nations in order to quicken their rate of
economic development; this will boost demand for
Two innovative policies have evolved in developing nations over the past few decades
in an effort to direct choices toward social and environmental goods. Since they aim to
provide monetary incentives for individual decision makers to adopt particular
behaviors, these two might be considered incentive-based policies. Cash payments
known as conditional cash transfers, or CCTs, are made contingent upon recipients
participating in socially beneficial activities. Examples of these activities include keeping
children in school or seeing a doctor on a regular basis. Money is paid to individuals
who participate in environmental conservation initiatives, such as keeping a portion of
land covered in forest cover or refraining from cultivating steeply sloping terrain, under
the terms of payment for environmental services (PES).
enhanced environmental quality, as was previously said. The goal of environmental
technology transfer is to lessen economic development's negative effects on the
environment, both relative to what would happen naturally and maybe historically in the
industrialized world. It is already clear that if the
If the rest of the world follows the rich countries' path of high pollution development, it
will deplete global resources enormously and have possibly severe effects on the
environment. Several international environmental treaties contain specific clauses
pertaining to technology transfer. The signatories to the 1989 Basel Convention on
Hazardous Waste are required to give developing nations technical help in order for
them to execute the convention. A fund is established to assist developing countries in
meeting the requirements for reduced emissions, and the 1990 amendments to the
Montreal Protocol on protection of the ozone layer mandate that developed countries
make new reduced-CFC technology available to developing countries on reasonable
terms.
REFERENCE

Source: Department of Justice, Office of

Public Affairs, Justice News, May 12, 2012,

http://www.justice.gov/opa/pr.

ENVIRONMENTAL ECONOMICS

Barry C Field/ Martha K Field

Seventh Edition
I (full names): LIHLE MTSHAGI
………………………………………………………………………………………
Student number: 12162051. Module code: ECS2606
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Signature L. M. Date: 20 September 2024