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ECS2606 Assignment 2 Semester 1 | Due 22 April 2025. All questions answered. 1. Analyze the static perspectives of the relationship between the economic growth and the environment in developing countries. 2. Explain how multiple sources of emissions can be controlled by using the equimarginal principle. 3. Use a graph to explain whether one standard of emissions can be simultaneously efficient in both a rural and an urban area. Efficiency of Market Based instruments Empirical studios In the United States (US) show that the efficiency gains associated with using economic Instruments rather than command-and-control has been substantial. Tietenberg suggests that approaches to regulate air pollution were as much as 22 times as expensive as the least-cost market-oriented alternative. For the eleven applications studied command and control applications were on average six times as expensive. Anderson et al. estimated that as of 1992. economic instruments for air, water, and land pollution within the US had saved more than US$11 billion relative to a command-and-control baseline. 4.1. Discuss the three types of environmental standards which form the command and control strategies. 4.2. Explain why incentive-based policies such as market-based instruments would tend to produce more efficiency gains than command-and-control policies? 5.Explain how property rights can steer the economy to social efficiency.

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Description

ECS2606 Assignment 2 Semester 1 | Due 22 April 2025. All questions answered. 1. Analyze the static perspectives of the relationship between the economic growth and the environment in developing countries. 2. Explain how multiple sources of emissions can be controlled by using the equimarginal principle. 3. Use a graph to explain whether one standard of emissions can be simultaneously efficient in both a rural and an urban area. Efficiency of Market Based instruments Empirical studios In the United States (US) show that the efficiency gains associated with using economic Instruments rather than command-and-control has been substantial. Tietenberg suggests that approaches to regulate air pollution were as much as 22 times as expensive as the least-cost market-oriented alternative. For the eleven applications studied command and control applications were on average six times as expensive. Anderson et al. estimated that as of 1992. economic instruments for air, water, and land pollution within the US had saved more than US$11 billion relative to a command-and-control baseline. 4.1. Discuss the three types of environmental standards which form the command and control strategies. 4.2. Explain why incentive-based policies such as market-based instruments would tend to produce more efficiency gains than command-and-control policies? 5.Explain how property rights can steer the economy to social efficiency.

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