Econ ch 12

  1. Ambient Quality
    The concentration of a pollutant in the environment
  2. Cost Effectiveness
    The least costly way to meet an abatement target
  3. Technological Feasibility
    A technically practical way to abate
  4. Equimarginal Principle
    The costs of abating a specified amount are at their minimum when all sources of pollution have equal marginal costs of abatement
  5. Command and Control instruments/Standards
    Direct commands to firms which are controlled to ensure compliance
  6. Input Standard
    Restricts the use of an input to production. Ex- lead
  7. Technology/Process Standard
    directs producers to use a specific technology or process. Ex- smokestack scrubbers
  8. Emissions/Effluent Standards
    Requires a source to emit no more than a given amount of effluent or rate of effluent
  9. Technology Based Effluent Standard
    A standard that is set based on the effluent levels that would be emitted if a known technology were used
  10. Ambient Standards
    Specify the concentration of pollution that is acceptable in the environment
  11. Point Source
    Emits its effluent from and identifiable point like a drainage pipe
  12. Non-Point Source Pollution
    Occurs when it is either impossible to see the emissions or when the emissions travel a long way before the settle, cannot be easily traced
  13. Market-Based Instruments/ Market Based Incentives/ Market Mechanisms
    Use incentives to encourage a change in behavior rather than requiring firms to undertake specific behavior
  14. Pollution Tax
    A requirement to pay a set price for every unit of pollution that a source emits
  15. Subsidy
    A payment as an incentive to change behavior
  16. Marketable permit program/tradeable emissions program/ cap and trade program
    The buying and selling of pollution permits. Regulator caps number of permits, assigns or auctions permits, and then firms buy and sell amongst each other
  17. Offset
    An additional quantity of a pollutant that a firm is allowed to emit if the firm ensures that emissions outside it own operations are reduced by the same amount
Card Set
Econ ch 12
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