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ENR721S - ENVIRONMENTAL AND NATURAL RESOURCES ECONOMICS - 2ND OPP - NOV 2024 |
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nAml BIA unlVERSITY
OF SCIEnCE AnDTECHnOLOGY
FACULTYOF HEALTH,NATURALRESOURCESAND APPLIEDSCIENCES
SCHOOLOF AGRICULTUREAND NATURALRESOURCESSCIENCES
DEPARTMENTOF AGRICULTURALSCIENCESAND AGRIBUSINESS
QUALIFICATIONS:BACHELOROF SCIENCEIN AGRICULTURE
QUALIFICATIONSCODE: 07BAGA LEVEL:7
COURSECODE: ENR721S
DATE: JANUARY 2025
DURATION: 3 HOURS
COURSENAME: Environmental and Natural Resources
Economics
PAPER:2
MARKS: 100
SECONDOPPORTUNITY/SUPPLEMENTARYEXAMINATION QUESTION PAPER
EXAMINER:
DR. TEOFILUSSHIIMI
MODERATOR: 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. Using the materials balance model, briefly explain how each of the following factors will affect the
environmental health and quality:
[6]
i. population growth
ii. Increased industrial of reuse & recycling
iii. Introduction of pollution reduction technologies
b. Explain the following concepts making reference to environmental standards:
[6]
i. Ambient standard
ii. Performance-based standard
iii. Technology-based standard
c. By definition, differentiate the following terminology
i. Natural pollutants and Anthropogenic pollutants
ii. Local pollution and regional pollution
iii. Environmental quality and Sustainable development
iv. Command-and-control approach and Market approach
Question 2
[8]
Sub-Total: 20 Marks
a. Define the CoaseTheorem.
[2]
b. Discusstwo limitations of the CoaseTheorem.
[4]
c. Explain nonrivalness means to you as a characteristic of a public goods.
[2]
d. Discussfour limitations of environmental standards from an allocative efficient perspective. [8]
e. Discusstwo motives behind the introduction of natural environmental policies in the management
of the environment.
[4]
Sub-Total: 20 Marks
Question 3
a. Suppose the following functions represents the market demand and supply for cups made from
= = recycled materials; Qd 200 - 2P and Q5 SP - 150, respectively. Where P is the price per ton
and Q is the quantity in thousands of tons per year.
i. Basedon these equations, determine the equilibrium quantity (QE)and price (PE)of cups made
from recycled materials
[4]
ii. Graphically illustrate the cups made from recycled materials market based on the supply and
demand equations given. Provide numerical labels for the equilibrium price and quantity.
[4]
iii. Suppose that because of market changes, the selling price of cups made from recycled materials is
N$35 per ton. At this price level, is the market in an equilibrium, shortage, or surplus condition? Be
sure to support with specific values.
[4]
iv. With your economic understanding of the supply and demand function in the competitive market,
explain why a shortage or surplus occurred with the market change that happened in Question 3. A.iii.
[3]
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,,
v. Explain what happened to the quantity of cups supplied when the price changed from the initial
equilibrium to the new price of N$35 per Ton.
[3]
vi. Discusswhat happened to the size of the consumer surplus when the price of cups made of recycled
material moved from the initial equilibrium price to N$35/ton.
[2]
Sub-Total: 20 Marks
Question 4
a. Suppose an abattoir is releasing pollution into a nearby aquafer, and the associated health and
ecological damages are not considered in the private market for meat. Suppose you are Policy
Analyst working for the Ministry of Environment Forest and Tourism, and you have estimated the
following marginal benefits and costs for the meat market.
MPB = 900 - 0.SQ
MPC = 100 + 0.3Q
MEC = 0.8Q
Where Q is the quantity in thousands of carcases produced and Pis the price per carcase.
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.
[4]
b. Suppose that two firms, X and Y,face the following abatement costs:
= = Firm 1 MACx 1.8Ax, TACx 0.9(Ax)2
= = Firm 2 MACy 1.2Ay, TACy 0.6(Ay)2
Further assume that the combined abatement standard is 60 units for both firms. Use this
information to answer the questions below.
i. Prove that a uniform standard will not meet the cost-effectiveness criterion.
[4]
ii. Determine how the abatement levels should be reallocated across the two firms to minimize costs
[6]
iii. Estimate the cost savings associated with the cost-effective solution compared to a uniform
standard.
[4]
Sub-Total: 20 Marks
Question 5
a. Explain the following concepts within the context of environmental policy planning:
[6]
i. Voluntary and involuntary risk
ii. Risk assessment
iii. Risk management
b. Describe the ecological risk assessment process.
[6]
c. Discusstwo major tasks aimed by the implementation of the risk management process.
[4]
d. "Risk characterization is the final step of risk assessment, which is the objective of the entire
process" Discusswhat is expected to be the content of the risk characterization.
[4]
Sub-Total: 20 Marks
End!
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