ECON 210 Study Guide - Final Guide: Sampling Bias, Begging The Question, Middle Term
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 1997 kyoto accord. 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.
