Economics 527
Exam 1
Environmental Economics
Monday, February 15, 1999
E. W. Nafziger
Cardwell 129
10:30-11:25 a.m.

1. (40 points) Lester Brown states that: "Adequately feeding the projected increases in population poses one of the most difficult challenges that modern civilization faces. With little prospect of achieving an acceptable balance between food and people by supply-side initiatives alone, the time has come to focus on the demand side of the food equation as well. This means finding ways to accelerate the shift to small families, particularly in those countries where many are already hungry and malnourished, and it means moving down the food chain for those who are consuming unhealthily large amounts of livestock products." Discuss and evaluate.

2. (40 points) S. M. Roy argues that "Most environmental degradation is caused by grinding poverty. The only way we can prevent high rates of environmental degradation in poor countries is to raise their material levels of well-being." Discuss and evaluate Roy's views.

3. (10 points) Why will China's population continue to grow throughout the twenty-first century, despite fertility rates that reached replacement levels in 1995? [Answer could be less than 4-5 sentences.]

4. (10 points) Indicate why conventional microeconomic principles are not adequate when making decisions about locating industry near the Grand Canyon. [Answer could be less than 4-5 sentences.]

Economics 527
Exam 2
Environmental Economics
Friday, March 12, 1999
E. W. Nafziger
Cardwell 129
10:30-11:25 a.m.
Administered by Ms. Irina Kondaurova

3. How would Dakha, Bangladesh municipal authorities decide whether to build an underground railway (or subway)? Discuss the economic principles involved, including in your discussion both environmental and non-environmental factors.

4. Theodore Panayotou argues that "Ultimately environmental damage can be traced to distorted markets and policy failures." Identify some of these market distortions and policy failures that contributed to environmental damage in the factory (later abandoned) in Holden, Missouri that spewed toxic waste (the example discussed in class). Discuss.

3. Use both a graph and words to explain the decision-making rule to use to minimize social cost where suspended particulate matter (SPM) in Kansas City, Missouri, is involved? Explain the various types of costs that are part of the curves you have drawn. Discuss.

Economics 527
Environmental Economics
Monday, April 19, 1999
3rd exm
E. W. Nafziger
10:30-11:25 a.m.
Cardwell 129

1. Discuss what is meant by green taxes or green markets; illustrate an example of how to use green taxes or green markets to achieve greenhouse-gas abatement at least cost; and indicate the strengths and weaknesses of using your example of green taxes or green markets as opposed to other policies for reducing greenhouse-gas emissions.

2. Discuss efforts by the community of Loma Alta, Ecuador to protect its garua forest, and discuss what were the benefits and costs of the protection. What were the reasons for the success of the Loma Alta community in their efforts at conservation? Discuss.

Economics 527
Environmental Economics
Fourth Exam
Take-home Exam
E. W. Nafziger
Due April 30, 1999,
10:30 a.m. in Cardwell 129

Analyze and evaluate the contrasting views of Theodore Panayotou and Wes Jackson with regard to the reasons for environmental and resource problems, and the policies society can use to attain environmental goals.

Sources for Wes Jackson's view include his book, Becoming Native to This Place (on Farrell library reserve) and/or the expressions of Jackson's views and Land Institute staff view during the class field trip. Sources for Panayotou include articles in CBC.

You may substitute the view of Ronald Coase, "The Problems of Social Cost," D&D, pp. 109-38; Dales, "Land, Water, and Ownership," D&D, pp. 225-40; Solow, D&D, pp. 162-87; or the Dorfmans, D&D, overviews, and pp. 79-96, 297-322, for the view of Panayotou.

Criteria used to grade the essay will include analysis, organization, and clarity of expression.

Write the essay in no more than five single-spaced elite (12 spaces per inch) typewritten equivalent pages. Be sure to cite sources, e.g. (Panayotou, 141), (Hardin, D&D, 7), Nordhaus, CBC, 161), (W. Jackson, 70), (Lecture by Wes Jackson, April 27, 1999), (Conversation with Elizabeth Jones, April 28, 1999), (Lecture, April 26, 1999). For sources outside the readings or outside Wes Jackson, Becoming Native to This Place, list as (Smith 1998: 36-38) for author, year, and pages in text; in the references (not to be included in the five single-spaced limit for each essay), include author, title, publishing information if book (city, publishing company, year, and pages, if relevant) or journal (name of journal, volume number, date, page numbers).

Economics 527
Environmental Economics
Friday, May 14, 1999,
11:50-1:40
E. W. Nafziger
Cardwell 129
5th exam

1. Indicate what changes should be made to national product and investment criteria to take into consideration environmental concerns. Discuss.

2. Critically evaluate Daly's impossibility theorem, indicating what the theorem is, what the implications of the theorem are, and the cases for and against the validity of the theorem. Discuss