Overseas Firms and Environmental Regulations Impact

Stricter environmental policies will shift pollution-intensive production toward low abatement-cost regions, creating 'pollution havens'.

Environmental regulations have a net positive effect on the competitiveness of firms by encouraging cost-cutting improvements, innovation, and technological leadership.

Production has shifted slightly from countries with strict regulations to those with weaker regulations.

<p>There has been no increase in investment by the U.S. due to environmental regulations.</p> Signup and view all the answers

<p>Gross jobs lost locally can be significant, but the net national employment change is usually much smaller.</p> Signup and view all the answers

<p>The ease of firms moving and the regulatory environment of other firms in the same industry influence employment effects.</p> Signup and view all the answers

<p>Kaldor-Hicks</p> Signup and view all the answers

<p>The discounted present value of the possible infinite stream of expected benefits and costs.</p> Signup and view all the answers

<p>The ratio between the discounted present benefits and costs.</p> Signup and view all the answers

<p>The relative valuation society places on future consumption sacrificed at present.</p> Signup and view all the answers

<p>7%</p> Signup and view all the answers

<p>2%</p> Signup and view all the answers

<p>The Social Cost of Carbon is the present discounted value of a future stream of monetized damages of incremental increases in CO2 emissions in a given year.</p> Signup and view all the answers

<p>The primary challenge is attempting accuracy due to the diversity of micro-damage functions.</p> Signup and view all the answers

<p>Monte Carlo Analysis is employed to account for uncertainty.</p> Signup and view all the answers

<p>Revealed Preference Methods use information from actual behavior to estimate benefit values.</p> Signup and view all the answers

<p>The main assumption is that people observe and pay attention to the attribute of interest, such as air quality.</p> Signup and view all the answers

<p>The Cost of Illness method often underestimates willingness to pay as it leaves out 'pain and suffering'.</p> Signup and view all the answers

<p>The Warm Glow effect refers to people giving unrealistically high answers in surveys to purchase moral satisfaction.</p> Signup and view all the answers

<p>The aim is to transfer benefit values from existing studies to estimate benefits for a specific policy case.</p> Signup and view all the answers

<p>VSL aims to determine how much individuals would sacrifice for a small reduction in the probability of death.</p> Signup and view all the answers

<p>One primary concern is that respondents may not understand what they are being asked to value in the surveys.</p> Signup and view all the answers

<p>Reducing net emissions of CO2, geoengineering, adaption</p> Signup and view all the answers

<p>Efficient outcome regardless of initial assignment of property rights</p> Signup and view all the answers

<p>Degree of emissions reductions that maximizes net benefits</p> Signup and view all the answers

<p>Achieving any target in the least-costly way</p> Signup and view all the answers

<p>Discounted present value of expected benefits and costs</p> Signup and view all the answers

<p>If NPV &gt; 0, the project should be done</p> Signup and view all the answers

<p>Project is preferred if B/C &gt; 1</p> Signup and view all the answers

<p>Valuation society places on future consumption presently sacrificed</p> Signup and view all the answers

<p>Future value may become trivial in present value terms</p> Signup and view all the answers

<p>VSL stands for Value of Statistical Life. It is calculated as people's stated or revealed marginal valuation for a small change in risk, standardized for a risk change of 1.</p> Signup and view all the answers

<p>Comparing projects of different lengths in time</p> Signup and view all the answers

<p>VSL should be adjusted for timing but not necessarily the dread/pain or involuntary vs voluntary risk. There is also mixed results on how health status affects VSL.</p> Signup and view all the answers

<p>Cost-effectiveness asks whether the policy accomplishes the given goal in the least costly way, while efficiency aims to set goals that are aligned with what's efficient.</p> Signup and view all the answers

<p>Cap and trade system is a type of tradable permits that sets the pollution level goal directly. Firms are required to relinquish one permit for every unit of pollution they emit.</p> Signup and view all the answers

<p>Challenges include doubts about whether the target reductions will actually be achieved, concerns about higher costs for the private sector, and fear among environmental advocates that visible costs may cause resistance.</p> Signup and view all the answers

<p>The Coase Theorem states that negotiation between two parties about an externality can lead to an efficient outcome if there are no transaction costs, no significant income effects, and no third party impacts.</p> Signup and view all the answers

<p>Technology standards require all polluters to install a specific piece of pollution control technology. Performance standards allow the level of pollution to vary among sources but require the same emissions per unit of production.</p> Signup and view all the answers

<p>In ERC systems, there is no cap on aggregate emissions. Individuals generating credits by reducing emissions can use or sell them for compliance with other policies, reducing compliance costs.</p> Signup and view all the answers

<p>Criteria include achieving stated goals efficiently, cost-effectiveness, providing necessary information to the government, monitoring and enforcement capabilities, flexibility, and equitable distribution of impacts.</p> Signup and view all the answers

<p>Pareto Theory states that a policy change is deemed an improvement if at least some people benefit without making anyone worse off.</p> Signup and view all the answers