ENVIRONMENTAL ECONOMICS - LECTURE 2

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  • Created by: ENee97
  • Created on: 25-09-18 19:34
WHAT IS PPF/PPC?
THE PRODUCTION POSSIBILTES FRONTIER/CURVE.
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WHAT DOES THIS CURVE ASSUME?
THAT A FIRM PRODUCES ONLY TWO GOODS AND THAT LABOUR IS THE ONLY INPUT
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WHAT DOES IT IDENTIFY?
THE SET OF AL FEASIBLE BUNDLES THAT CAN BE PRODUCED.
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WHAT ARE POINTS A & B ON THE CURVE
THEY ARE OPTIMAL
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WHAT IS POINT C?
C IS NOT CURRENTLY POSSIBLE
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WHAT IS POINT D?
D IS NOT EFFICIENT
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WHAT IS THE POSITVE ANALYSIS OF THE PPC?
WHAT CAN BE PRODUCED
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WHAT IS THE NORMATIVE ANALYSIS?
WHAT COULD BE PRODUCED.
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WHERE IS THE TRADEOFF ON THE PPC?
ALONG THE SLOPE OF THE FRONTIER.
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HOW COULD THE OPPORTUNITY COSTS BE FOUND?
IF THERE WAS INFORMATION ON THE PRICES, YOU COULD FIGURE UT THE FOREGONE REVENUE OF PRODUCING ONE GOOD
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WHAT MAKES THE CURVE SHIFT INWARDS?
WHEN THERE IS LIMITED RESOURCES.
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WHAT CHARACTERISTICS OF EMISSIONS IS THERE?
1. NON CUMMULATIVE V CUMMULATIVE. 2. POINT AND NON POINT SOURCE. 3. CONTINUOUS AND PISODIC.
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EXAMPLE OF NON CUMMULATIVE VS CUMMULATIVE?
NON CUMMULATIVE EXAMPLE WOULD BE NOISE WHICH CAN STOP, BUT CUMMULATIVE WOULD BE GHG EMISSONS OR PLASTICS WHICH, ONCE PRODUCED, TAKE A LONG TIME TO STOP/CLEAN MEANING THEY ACCUMULAT AND BECOME SIGNIFICANT AT HIGH LEVELS.
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EXAMPLE OF NON AND PONT SOURCES?
A POINT SOURCE CAN BE EASILY IDENTIFIED SUCH AS A SINGLE POLLUTANT, WHEREAS NON-PONT SOURCES ARE POLLUTANTS FROM SEVERAL CONTRIBUTORS. AN EXAMPLE OF THAT IS A RIVER, WHICH RECIEVES RUBBISH THROWN IN, RUN OFF INTO, ABSORBS POLLUTANTS ETC.
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EXAMPLE OF CONTINUOUS AND EPISODIC EMISSIONS?
CONTINUOUS IS A CONSTANT SOUR E OF EMISSIONS WHERE AS EPISODIC ARE ONE OFF (USUALLY LARGE) EVENTS WHICH HAVE SIGNIFICANT DAMAGE BUT ARE HARD TO MEASURE E.G. FUKISHIMA.
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Other cards in this set

Card 2

Front

WHAT DOES THIS CURVE ASSUME?

Back

THAT A FIRM PRODUCES ONLY TWO GOODS AND THAT LABOUR IS THE ONLY INPUT

Card 3

Front

WHAT DOES IT IDENTIFY?

Back

Preview of the front of card 3

Card 4

Front

WHAT ARE POINTS A & B ON THE CURVE

Back

Preview of the front of card 4

Card 5

Front

WHAT IS POINT C?

Back

Preview of the front of card 5
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