Environmental Management
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Course Introduction
Environmental Management examines the principles, tools, and strategies used to manage human impacts on the natural environment. The course explores key topics such as sustainable resource use, pollution control, environmental policy, ecological risk assessment, and environmental planning. Students will analyze case studies and real-world scenarios to understand the complexities involved in balancing economic development with environmental protection. By integrating scientific, regulatory, and social perspectives, the course prepares students to design and implement effective solutions for current and emerging environmental challenges.
Recommended Textbook
Environmental Economics and Management Theory Policy and Applications 6th Edition by Scott
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21 Chapters
884 Verified Questions
884 Flashcards
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Page 2
Chapter 1: The Role of Economics in Environmental Management
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42 Verified Questions
42 Flashcards
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Sample Questions
Q1) The discipline concerned with the resource flow from economic activity back to nature is known as natural resource economics.
A)True
B)False
Answer: False
Q2) Runoff from urban streets is an example of nonpoint source pollution.
A)True
B)False
Answer: True
Q3) Recycling efforts such as those exemplified by BMW's Design for Disassembly (DFD) program
A) permanently diminish the flow of residuals back to nature
B) are not represented in the materials balance model
C) represent short-term conversion of residuals into recycled materials or goods
D) reduce the amount of wastes returned to nature in the long-run
Answer: C
Q4) Natural pollutants are those linked to human activity.
A)True
B)False Answer: False
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Chapter 2: Modeling the Market Process: a Review of the Basics
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Sample Questions
Q1) Market supply for a private good is found by A) vertically summing all market prices for a given quantity B) horizontally summing the quantity decisions of producers at each and every price C) adding the price-quantity pairs for all units sold D) none of the above
Answer: B
Q2) A change in price results in a shift in the demand curve.
A)True
B)False
Answer: False
Q3) If market demand for solar panels is specified as Q<sub>D</sub> = 100 - 2.5P, the vertical intercept of demand, as conventionally graphed, is A) +100
B) -100
C) -2.5
D) +40
Answer: D
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Page 4
Chapter 3: Modeling Market Failure
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Sample Questions
Q1) Environmental pollution can be characterized as a market failure that distorts the classical market outcome.
A)True
B)False
Answer: True
Q2) At a competitive equilibrium, M = 0, but at an efficient equilibrium MEC = 0.
A)True
B)False
Answer: False
Q3) The underlying assumptions of the Coase Theorem are that transactions are costless and that damages are accessible and can be measured.
A)True
B)False Answer: True
Q4) Property rights are the set of valid claims to a good or resource that allow its use and the transfer of ownership through a sale.
A)True
B)False Answer: True
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Chapter 4: Conventional Solutions to Environmental
Problems: Command-And-Control Approach
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Sample Questions
Q1) A benefit-based standard
A) is one that balances social benefits with social costs, at the margin B) achieves allocative efficiency
C) achieves a cost-effective level of pollution abatement D) is set to improve society's well-being without consideration for costs
Q2) Consider the environmental problem created by two paint companies that release chromium wastes into a nearby stream. The state authorities set a standard for the waterway that requires a combined abatement level (A) for chromium of 15 units. Suppose that the two firms, firm 1 and firm 2, face the following marginal abatement cost equations: MAC<sub>1</sub> = 3.2A<sub>1</sub> and MAC<sub>2</sub> = 0.8A<sub>2</sub>, where costs are measured in thousands of dollars.
a. If the state uses a uniform standard, show that such a ruling would not be cost-effective. Which firm should be abating more, and which firm should be abating less?
b. Now find the cost-effective solution.
Q3) If a standard is set to balance the well-being of society with the associated costs, it is called a benefit-based standard.
A)True B)False
Page 6
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Chapter 5: Economic Solutions to Environmental Problems: the Market Approach
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Sample Questions
Q1) A payment or tax concession aimed at lowering the cost of abating is called a pollution charge.
A)True
B)False
Q2) If firms abate to the point where each firm's MAC equals the marginal tax, an efficient solution will result.
A)True
B)False
Q3) In a deposit-refund system,
A) the refund component rewards potential polluters for proper disposal or recycling activity
B) the deposit should be set equal to the MSC of illegal waste disposal to achieve efficiency
C) monitoring and enforcement costs are higher than if a pollution charge were used
D) actual polluters are not penalized for actions that harm the environment
Q4) A pollution charge follows the "polluter-pays principle."
A)True
B)False
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Chapter 6: Environmental Risk Analysis
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Sample Questions
Q1) An evaluation of relative risk is known as
A) risk-benefit analysis
B) comparative risk analysis
C) benefit-cost analysis
D) de minimis risk
Q2) In risk characterization, the quantitative component
A) can be presented as a probability
B) might include a reference dose (RfD) to communicate non-carcinogenic health risks
C) can be based on inferences instead of actual data
D) all of the above
Q3) The objective of risk management is to both identify risk and to respond to it.
A)True
B)False
Q4) Which of the following are examples of involuntary risks?
A) skydiving
B) mountain climbing
C) being exposed to secondhand smoke
D) (b) and (c) only
E) none of the above
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Chapter 7: Assessing Benefits for Environmental Decision Making
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Sample Questions
Q1) In modeling the travel cost method, the estimated benefit of improving the environmental quality of a natural resource is captured by the change in consumer surplus associated with a decrease in demand for that resource
A)True
B)False
Q2) The utility a consumer derives from knowing that others receive benefit from an environmental good is called
A) stewardship value
B) indirect user value
C) direct user value
D) vicarious consumption
Q3) Among the advantages of the hedonic price method is that data on a product's characteristics are readily available.
A)True
B)False
Q4) There is some debate about whether secondary benefits should be considered when assessing public policy proposals. Identify two reasons why secondary benefits might be excluded from a benefit-cost analysis of proposed environmental policy.
Page 9
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Chapter 8: Assessing Costs for Environmental Decision Making
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Sample Questions
Q1) Explicit costs include
A) monitoring expenses incurred by the government
B) enforcement costs paid by the public sector
C) compliance costs incurred by all economic sectors
D) all of the above
E) none of the above
Q2) According to the survey approach, abatement spending is estimated based on the lowest-cost technology available.
A)True
B)False
Q3) The time cost incurred by consumers who must find substitute products after a ban is placed on some good or service is an example of a(n)
A) capital cost
B) fixed cost
C) explicit cost
D) operating expense
E) implicit cost
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Page 10
Chapter 9: Benefit-Cost Analysis in Environmental Decision
Making
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37 Verified Questions
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Sample Questions
Q1) Deflating refers to the process of converting a real value into its nominal value.
A)True
B)False
Q2) In conducting a benefit-cost analysis, it is more difficult to assign a dollar value to costs than to benefits.
A)True
B)False
Q3) Who was the first U.S. president to explicitly refer to the efficiency criterion as part of the regulatory review process?
A) President Clinton
B) President George W. Bush
C) President Reagan
D) President Obama
Q4) For a given policy option, if the ratio of the present value of benefits (PVB) to the present value of costs (PVC) is greater than zero, that policy option is considered to be feasible.
A)True
B)False
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Chapter 10: Defining Air Quality: the Standard-Setting Process
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Sample Questions
Q1) Air Quality Control Regions (AQCRs) are those geographic areas in the United States identified as having met all air quality standards.
A)True
B)False
Q2) Suppose that the MSB and MSC of abating sulfur dioxide are as follows. Use these functions to answer parts (a) and (b) below.
MSB = 32 - 0.2A MSC<sub> </sub>= 16 + 0.2A
a. Because the NAAQS are set using a benefit-based decision rule, find the abatement level of sulfur dioxide that would adhere to this rule.
b. If instead the NAAQS were legislated to achieve efficiency, find the efficeint abatement level (A<sub>E</sub>) for sulfur dioxide.
Q3) The NAAQS
A) are set using benefit-cost analysis
B) are established using a benefit-based decision rule
C) achieve efficient levels of abatement for the criteria pollutants
D) both (a) and (c) are correct
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Page 12
Chapter 11: Improving Air Quality: Controlling Mobile
Sources
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Sample Questions
Q1) Title II of the Clean Air Act Amendments of 1990 strengthened regulations on motor vehicle emissions and fuels.
A)True
B)False
Q2) Ethanol (E10) is a blend of 10 percent gasoline and 90 percent ethanol and is known as gasohol.
A)True
B)False
Q3) Under the new GHG emissions standards for mobile sources, light-duty vehicles will have to achieve an average emissions level of 250 grams of carbon dioxide (CO<sub>2</sub>) for model year 2016.
A)True
B)False
Q4) Used in certain nonattainment areas, the cleaner fuel that emits less hydrocarbons, carbon monoxide, and toxics than conventional gasoline is called oxygenated fuel.
A)True
B)False
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Chapter 12: Improving Air Quality: Controlling Stationary Sources
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Sample Questions
Q1) The Clean Air Interstate Rule (CAIR)
A) established three trading programs, one for SO<sub>2</sub> and two for NO<sub>X</sub>
B) was enacted under the Obama Administration
C) set emissions limits without any accompanying trading program
D) all of the above
E) none of the above
Q2) RECLAIM refers to
A) one of the first state-level trading programs, which was developed in California
B) a federal program for stationary sources to earn credits for reducing pollution
C) a national program to refurbish older, polluting refineries
D) the claiming of SO<sub>2</sub> allowances that have been banked in a prior period
Q3) Explain why the current abatement levels for the two sources do not achieve cost effectiveness.
Q4) Find the cost effective allocation of abatement across the two sources that also satisfies the 40 percent aggregate abatement level. Support with calculations.
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Page 14
Chapter 13: Global Air Quality: Policies for Ozone Depletion and Climate Change
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Sample Questions
Q1) In this case, how much of the $5.00 excise tax is paid by the consumer?
A) $3.75
B) $2.25
C) $5.00
D) $1.25
E) none of the above
Q2) The Kyoto Protocol banned the use of CFCs.
A)True
B)False
Q3) Under the Kyoto protocol, developed and developing countries have the same responsibilities and commitments.
A)True
B)False
Q4) The U.S. federal government has enacted a nationwide carbon tax to reduce carbon dioxide emissions.
A)True
B)False
Q5) During the Bush administration, the United States ratified the Kyoto Protocol. A)True
B)False
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Chapter 14: Defining Water Quality: the Standard-Setting Process
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Sample Questions
Q1) The 1989 Exxon Valdez oil spill is the largest tanker spill in U.S. history.
A)True
B)False
Q2) The phenomenon that explains the interdependence of water resources and the natural movement of water from the atmosphere to the surface, to beneath the ground, and back to the atmosphere is the
A) estuarial cycle
B) runoff process
C) hydrologic cycle
D) watershed progression
Q3) In the U.S., the two components of the receiving water quality standards are
A) the BAT and the BCT
B) use-support status and effluent limitations
C) the use designation and water quality criteria
D) the zero discharge goal and the NPDES
Q4) A cruise ship is an example of a nonpoint source.
A)True
B)False
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Chapter 15: Improving Water Quality: Controlling Point and Nonpoint Sources
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Sample Questions
Q1) The use of watershed-based NPDES permits allows for permitting multiple point sources within a single watershed.
A)True
B)False
Q2) Compared to the efficient level of abatement, the benefit-based abatement standard
A) is twice as large in this case
B) uses fewer resources
C) is associated with higher water quality
D) is more cost-effective
Q3) All of the following statements about the Nonpoint Source Management Program are correct EXCEPT
A) It was enacted as part of the Water Quality Act of 1987.
B) It is to be implemented by states with federal approval.
C) The federal government offers no funding for the program.
D) States are to implement a 3-part plan comprising reporting, program development, and program implementation.
Q4) A fertilizer tax is an example of an effluent fee.
A)True B)False
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Chapter 16: Protecting Safe Drinking Water
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Sample Questions
Q1) The water pricing scheme that offers an economic incentive to conserve water usage is the declining block pricing structure.
A)True
B)False
Q2) The most common pricing structure used for drinking water in the United States is the increasing block rate structure.
A)True
B)False
Q3) The Drinking Water State Revolving Fund (DWSRF)
A) was established under the Safe Drinking Water Act of 1974
B) received no additional funding from the American Recovery and Reinvestment Act
C) initially authorized $1 billion per year for infrastructure improvements
D) all of the above
Q4) Based on your findings, show that the new lead standard passed the feasibility test for this three-year period.
Sources: U.S. Federal Register 56 (110) (June 7, 1991); U.S. EPA, Office of Water, Office of Ground Water and Drinking Water (May 1991).
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18
Chapter 17: Managing Hazardous Solid Waste and Waste Sites
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Sample Questions
Q1) The Toxics Release Inventory (TRI)
A) is a national database providing information about hazardous releases
B) provides information on hazardous substances solely to government officials
C) is no longer maintained and reported to the public
D) provides an annual list of the parties responsible for hazardous releases
Q2) In 1984, amendments to RCRA restrict landfilling activity, which in turn
A) would cause the MPC of land disposal to rise
B) may offer some incentive for waste disposers to generate less waste
C) reduce the external cost of landfilling
D) all of the above
Q3) A type of hazardous substance is
A) an acid or base
B) a heavy metal like copper or mercury
C) synthetic organic chemicals, such as pesticides
D) all of the above
E) none of the above
Q4) According to the textbook application, Love Canal was originally contaminated by runoff from a military base.
A)True
B)False
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Chapter 18: Managing Municipal Solid Waste
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Sample Questions
Q1) If there is a negative externality associated with consumption of a product, the MSB of that product is below the MPB.
A)True
B)False
Q2) In terms of nonhazardous waste, the federal government is responsible for
A) every aspect of nonhazardous waste management
B) setting recycling rates for each state
C) establishing markets for recovered MSW
D) setting minimum criteria for sanitary landfills and other land disposal sites
Q3) A flat fee pricing system for MSW services
A) ignores the positively sloped MPC of MSW services
B) causes an underallocation of resources to MSW services
C) means that demanders pay nothing for MSW services
D) provides an incentive for waste reduction
Q4) When a flat fee pricing system is used, the MPC is coincident with the horizontal axis.
A)True
B)False
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Chapter 19: Controlling Pesticides and Toxic Chemicals
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Sample Questions
Q1) To internalize a consumption externality in the market for a toxic chemical
A) a unit subsidy can be offered on production equal to the MEC
B) a unit tax can be imposed equal to MEB
C) a tax should be set equal to the MSC
D) none of the above
Q2) If a unit tax is used to internalize the consumption externality of chemical use, it achieves efficiency if it is set equal to the MSB at the efficient output level.
A)True
B)False
Q3) FIFRA rulings require that no pesticide be sold or distributed unless it has been registered with the EPA.
A)True
B)False
Q4) Registration of new pesticides and reregistration of those already on the market are the chief instruments of FIFRA.
A)True
B)False
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Chapter 20: Sustainable Development: International Environmental Agreements
and International Trade
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Sample Questions
Q1) Chlorofluorocarbons (CFCs) are a group of chemicals believed to contribute to depletion of the ozone layer.
A)True
B)False
Q2) Available data indicate that the reduction of trade barriers associated with the World Trade Organization (WTO) has led to improved trade flows.
A)True
B)False
Q3) The international trade agreement that was executed in the 1940s was
A) the NAFTA
B) the U.S.-Mexico Border 2012 Agreement
C) the London Convention
D) the 1996 Protocol
E) the GATT
Q4) According to the textbook application, the pessimistic view about the shape of the Environmental Kuznets Curve is that, after a critical income level, a country can only maintain its existing pollution level.
A)True
B)False
22
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Chapter 21: Sustainable Approaches: Industrial Ecology and
Pollution Prevention
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Sample Questions
Q1) The "cradle to grave" approach to materials and waste management
A) involves a linear flow of materials and wastes
B) involves a circular flow of materials and wastes
C) does not consider industrial waste as part of the materials flow
D) none of the above
Q2) In the context of technology transfer, light green technologies refer to A) innovations that directly impact the environment
B) technologies that indirectly affect the environment
C) toxic chemical use substitution
D) none of the above
Q3) The United States is the only country to legislate pollution prevention.
A)True
B)False
Q4) A linear flow of materials assumes that materials move in a single direction, entering as inputs and leaving as residuals.
A)True
B)False
Q5) A major component of the ISO 14000 standards addresses life cycle assessments. A)True
B)False
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