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ENR721S - ENVIRONMENTAL AND NATURAL RESOURCES ECONOMICS - 1ST OPP - NOV 2024 |
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nAml BIA UnlVERSITY
OF SCIEnCE Ano TECHnOLOGY
FACULTYOF HEALTH,NATURALRESOURCESAND APPLIEDSCIENCES
SCHOOLOF AGRICULTUREAND NATURALRESOURCESSCIENCES
DEPARTMENTOF AGRICULTURALSCIENCESAND AGRIBUSINESS
QUALIFICATIONS:BACHELOROF SCIENCEIN AGRICULTURE
QUALIFICATIONSCODE: 07BAGA LEVEL:7
COURSECODE: ENR721S
DATE: NOVEMBER 2024
DURATION: 3 HOURS
COURSENAME: Environmental and Natural Resources
Economics
PAPER:1
MARKS: 100
EXAMINER:
MODERATOR:
FIRSTOPPORTUNITY EXAMINATION QUESTION PAPER
DR. TEOFILUSSHIIMI
DR. SEAN KALUNDU
INSTRUCTIONS
1. Answer all the questions.
2. Write neatly and clearly.
3. Mark all answers clearly with their respective question numbers.
4. All written work MUST be done in blue or black ink.
5. No books, notes and other additional aids are allowed.
PERMISSIBLEMATERIALS
1. Calculator
2. Examination paper
3. Examination script
THIS QUESTION PAPERCONSISTSOF 2 PAGES
(ExcludingThis Front Page)
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Question 1
a. Suppose you have been requested to give a presentation to high school pupils on the relationship
between the environment and economic system within the framework of the Material Balance
Model. State and explain three talking points that would guide your presentation.
[6]
b. Use appropriate examples to describe a positive and negative environmental externality. [4)
c. Briefly explain instruments used under command-and-control when environmental policies are
considered for implementation.
[6]
d. Explain the difference between a public good and a private good.
[4]
Sub-Total: 20 Marks
Question 2
a. Using the command-and-control policy approach suggest three action you will introduce in your
community to reduce the pace of deforestation?
[3)
b. Discussthree main root causes of environmental degradation in your area.
[3]
c. Briefly explain the two main approaches that governments used to control and manage
environmental problems.
[4]
d. Clearly define the following terminology.
[10)
(i) Environmental economics
(ii) Natural resource economics
(iii) Natural resources
(iv) Sustainable Development
(v) Global pollution
Sub-Total: 20 Marks
Question 3
a. Suppose the following are demand and supply functions for water from a natural spring:
p = 100 - 0.001Qd
p = 10 + 0.0020s
Where Pis the price per litre and Q is the quantity in thousand litres per year.
i. What is the choke price and minimum selling price for natural spring water?
[2]
ii. Estimate the equilibrium quantity and price for natural spring water
[2]
iii. Suppose government wants to introduce a policy to prevent the overexploitation of natural spring
water. Suppose further that the policy will limit the volume of natural spring water is extracted and
sold to 20 000 thousand litres per year.
1. Estimate the demand price of water per litre when water is restricted at 20,000 litres
per year
[2]
2. Estimate the supply price of water per litre when water is restricted at 20,000 litres
per year
[2]
3. With the aid of a market model, estimate the welfare effects of the policy. (Hint: estimate the
dead weight loss associated with the policy.)
[9]
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i. Explain the implications caused by the implementation ofthe policy to the society's demand
of water?
[3]
Sub-Total: 20 Marks
Question 4
a. Suppose an abattoir is releasing pollution into a nearby aquifer, and the associated health and
ecological damages are not considered in the private market for meat. Suppose further that the
market for meat can be defined by the following marginal functions:
MPB =150- 0.0SQ
MPC =30 + 0.03Q
MEC =0.02Q
Where Q is the quantity of meat demanded and supplied in thousands of kilograms and MPB,
MPC, MEC are the marginal private benefits, marginal private costs, and marginal external cost,
respectively. The MPB, MPC, and MECare all in thousands of Namibian dollars.
i.
Estimate the quantity and price when the market is in competitive equilibrium.
[2]
ii.
Estimate the quantity and price when the market is in efficient equilibrium.
(2)
b. Assume that two power plants, Firm 1 and Firm 2, release sulfur dioxide (SO2)in a small urban
community that exceeds the emissions standard. To meet the standard, 30 units of SO2must be
abated in total. The two firms face the following costs:
MAC2= 10 + 2.SA2,
Where costs are measured in thousands of dollars.
i. Prove that a uniform standard will not meet the cost-effectiveness criterion.
[4]
ii. Determine how much the society will abate in total when the uniform standard is used.
[4]
iii. Determine how the abatement levels should be reallocated across the two firms to minimize
costs.
[6]
iv. Determine how much the society will abate in total after reallocating the units at equimarginal
principle of optimality
[2]
Sub-Total: 20 Marks
Question 5
a. Discussfour types of market instruments that are used by different governments to control
pollution.
[8]
b. Mention three evaluation measures of the exposure assessment with special consideration to
human health risk assessment.
[3]
c. Discussthree risk management strategies that you consider when executing the environmental
policy.
[3]
d. Mention and discuss the three scientific methods used to identify an environmental health
hazard
[6]
Sub-Total: 20 Marks
End!
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