Question 1

Which of the following is the most serious pollution problem in Latin America with regards to short-run public health?

Accepted Answer

A)   water pollution
B)   industrial waste
C)   air pollution
D)   biodiversity
E)   none of the above A

Question 2

Explain why the environmental Kuznets curve applies to Latin America.

Accepted Answer

The environmental Kuznets curve is a theory that suggests that as a country's income increases, its environmental degradation first worsens and then improves. This is because in the early stages of economic development, countries prioritize industrialization and economic growth over environmental protection, leading to increased pollution and resource depletion. However, as income continues to rise, countries are able to invest in cleaner technologies and environmental regulations, leading to a decrease in environmental degradation.

Latin America is a region where the environmental Kuznets curve applies for several reasons. Firstly, many countries in Latin America have experienced rapid industrialization and economic growth in recent decades, leading to increased pollution and deforestation. This initial phase of development has resulted in significant environmental degradation in the region.

However, as Latin American countries continue to develop and their income levels rise, there is a growing awareness of the need for environmental protection. Many countries in the region have implemented policies and initiatives aimed at reducing pollution, conserving natural resources, and promoting sustainable development. Additionally, there is a growing emphasis on renewable energy sources and conservation efforts in Latin America, indicating a shift towards more environmentally friendly practices.

Overall, the environmental Kuznets curve applies to Latin America because the region has experienced the initial phase of environmental degradation due to rapid industrialization and economic growth, but is now showing signs of improvement as countries invest in cleaner technologies and environmental regulations. This suggests that as income levels continue to rise in Latin America, there is potential for further environmental improvement in the region.

Question 3

Draw a graph and show why cheap gas and diesel is an environmental problem. How do you fix this?

Accepted Answer

To illustrate why cheap gas and diesel are an environmental problem, we can draw a graph that shows the correlation between the price of fuel and the consumption of vehicles. As the price of gas and diesel decreases, the demand for vehicles and the usage of these fuels increases. This leads to higher levels of air pollution, greenhouse gas emissions, and environmental degradation.

To fix this issue, several measures can be taken. One solution is to implement higher taxes on gas and diesel, which would increase their price and discourage excessive consumption. The revenue generated from these taxes can then be invested in public transportation, renewable energy, and infrastructure for electric vehicles. Additionally, promoting and incentivizing the use of electric and hybrid vehicles can help reduce the reliance on gas and diesel, leading to a decrease in environmental impact.

Furthermore, investing in research and development of alternative fuels and technologies can also provide long-term solutions to reduce the environmental impact of cheap gas and diesel. By implementing these measures, we can mitigate the environmental problems associated with cheap gas and diesel and work towards a more sustainable and eco-friendly transportation system.

Question 4

Explain why institutions are so important in regulating environmental issues.

Accepted Answer

The answer of Explain why institutions are so important in...

Question 5

Which form of pollution control is most common in Latin America?

Accepted Answer

A)   MBI
B)   CAC
C)   Cap and trade
D)   ISI
E)   MTN

Question 6

What is the major drawback of command and control as a means of pollution control policy?

Accepted Answer

A)   Producers have no incentive to reduce pollution past the set standard.
B)   CAC is very expensive to implement
C)   Most producers refuse to implement CAC
D)   Latin American governments do not have the authority to enforce CAC
E)   CAC does not lead to the socially optimal level of output for pollution intensive goods

Question 7

Which issue of pollution control do tradable pollution permits not address?

Accepted Answer

A)   Providing incentives for firms to produce output in a less pollution intensive manner
B)   Generating revenue for the government
C)   Allowing the government to set the overall pollution level
D)   Reduce pollution taking place in the informal sector of the economy
E)   Force firms to reveal what the right to pollute is worth

Question 8

Briefly describe the three policies available to deal with pollution. Which one is most commonly used in Latin America and which one perhaps may be more appropriate given the current institutional environment in many countries of the region?

Accepted Answer

The answer of Briefly describe the three policies available to...

Question 9

If pollution is too high in Mexico City, then the _____ of pollution is greater than the _____.

Accepted Answer

A)   MC; MB
B)   MB; MC
C)   ISI; MC
D)   MNC; MC
E)   none of the above

Question 10

Which of the following is the easiest environmental problem to deal with as the sources are easy to locate?

Accepted Answer

A)   air pollution
B)   industrial water pollution
C)   deforestation
D)   acid rain
E)   none of the above

Question 11

Which of these is not a common environmental issue in Latin America?

Accepted Answer

A)   Air pollution
B)   Deforestation
C)   Water pollution
D)   Chronic flooding
E)   Biodiversity

Question 12

Which country leads Latin America in CO2 emissions per capita?

Accepted Answer

A)   Paraguay
B)   Venezuela
C)   Columbia
D)   Chile
E)   Bolivia

Question 13

Suppose that a representative government in Latin America does not allow market forces to set the price of gas and/or diesel and the price is kept artificially low. How would one relate this to air pollution problems in large cities in the country?

Accepted Answer

The answer of Suppose that a representative government in Latin...

Question 14

According to the environmental Kuznets curve, which type of country will have the highest pollution levels?

Accepted Answer

A)   low income
B)   middle income
C)   high income
D)   developed
E)   authoritarian

Question 15

Which of the following is related to deforestation?

Accepted Answer

A)   positive externality
B)   tragedy of the commons
C)   plantation forestry
D)   a and b
E)   b and c

Question 16

The lack of property rights that leads to the overuse of natural resources is known as:

Accepted Answer

A)   biodiversity.
B)   the tragedy of the commons.
C)   sustainable development.
D)   pollution havens.
E)   none of the above

Question 17

_____ percent of the population of Latin America lives in urban areas.

Accepted Answer

A)   42
B)   51
C)   55
D)   61
E)   80

Question 18

List and briefly describe the 3 different solutions to the control of pollution. Which of the three is the most commonly used in Latin America? Why is this so?

Accepted Answer

The answer of List and briefly describe the 3 different...

Question 19

The environmental Kuznets curve shows that:

Accepted Answer

A)   as urbanization increases, pollution increases
B)   as urbanization increases, pollution decreases
C)   as GDP per capita increases, pollution increases, levels off, and then decreases
D)   as GDP per capita increases, pollution decreases, levels off, and then increases
E)   as GDP per capita increases, urbanization increases

Question 20

Which of these characteristics describe what is known as a tragedy of the commons?

Accepted Answer

A)   No available resources, no clear property rights
B)   Available resources, no clear property rights
C)   No available resources, clear property rights
D)   Available resources, clear property rights.
E)   none of the above

Exam 4: Growth and the Environment in Latin America