ECON 210 Final: ECON210 Final Exam Study Notes
Document Summary
History of environment and economics:1985 discovery of ozone hole led to 1987 montreal protocol to ban cfcs, stabilization of greenhouse gases (that produce global warming ) fueled 1985 rio summit and. 3 categories of emission control: 1) command and control regulation. Government commands companies to meet specific standards (such as amounts of particular pollutants, and. Controls the methods (such as technology) to achieve standards: 2) incentive based regulation. Uses economic behaviour of firms to achieve environmental goals. Set standards and allow market to determine means. Encourage pollution reduction: 3) clean technology. Put incentives for new technology that meets lower pollution goals. How do economics and ethics fit together: economics is anthropocentric (humans = centre of attention) and utilitarian (regarding rightness as a measure against whether an action or human welfare) Two views: short run and long run. In the short run, efficiency is most important. In the long run, ethics are most important: utility function.
