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Econ 2100 Exam 3 with precise detailed answers

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Econ 2100 Exam 3 with precise detailed answers

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Econ 2100 Exam 3 with precise detailed answers ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




Acidic Deposition - correct answer✔✔-Linked mainly to stationary sources
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-Occurs when sulfuric and nitric acids mix with other airborne particles and fall to earth as
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wet or dry deposits
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-These acids arise from the chemical reaction of SO2 and NOx emissions with water vapors
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and oxidants (oxygen or ozone) in atmosphere
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-SO2 is the more significant contributor
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-Major sources are fossil-fueled electricity plants, refineries, and other users of sulfur-
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containing fuel ||\\//||




-Sulfur found naturally in coal and oil is released during combustion
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Acidic Deposition Effects - correct answer✔✔Ecological effects
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Localized forest damage ||\\//|| ||\\//||




Acidification of surface waters ||\\//|| ||\\//|| ||\\//||




Health effects ||\\//||




Respiratory problems ||\\//||




Cardiovascular problems ||\\//||




Aesthetic effects ||\\//||

,Visibility impairment ||\\//||




Property effects ||\\//||




Damage to crops ||\\//|| ||\\//||




Damage to buildings ||\\//|| ||\\//||




Controlling Stationary Sources - correct answer✔✔Stationary sources include electric power||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




plants, ||\\//||




chemical plants, steel mills, etc. ||\\//|| ||\\//|| ||\\//|| ||\\//||




Primary controls in the U.S. are technology-based standards with emissions trading programs
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




added over time ||\\//|| ||\\//||




These controls vary with ||\\//|| ||\\//|| ||\\//|| ||\\//||




Facility age (new versus existing) ||\\//|| ||\\//|| ||\\//|| ||\\//||




Facility location (PSD versus nonattainment area)
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




Technology-based Standards Dual-control Approach - correct answer✔✔For new/modified ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




stationary sources (since 1970 CAA) ||\\//|| ||\\//|| ||\\//|| ||\\//||




-EPA-administered stringent limits, New Source Performance Standards (NSPS), are used ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




based on access to new technology
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For existing stationary sources
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-State-administered limits are used to give states control over industries affecting local ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




economies ||\\//||




Both limits are applied uniformly across firms within a given industry category (but can vary
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




across industry categories) ||\\//|| ||\\//||

,-Categories include electric utilities, chemical plants, petroleum refineries, coal mining, etc.
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




Setting the Control Technologies - correct answer✔✔PSD areas (more stringent)
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




-New sources: limits based on best available control technology (BACT)
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most stringent control technology
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-Existing sources: limits based on best available retrofit technology (BART)
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Nonattainment areas (less stringent) ||\\//|| ||\\//|| ||\\//||




-New sources: limits based on lowest achievable emissions rate (LAER)
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




-Existing sources: limits based on reasonably available control technology (RACT)
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




least stringent control technology
||\\//|| ||\\//|| ||\\//||




Control Technologies Summary - correct answer✔✔Emissions limits for PSD areas are more
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




stringent than in nonattainment areas ||\\//|| ||\\//|| ||\\//|| ||\\//||




Limits for New Sources are more stringent than those for Existing Sources within both types
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




of areas
||\\//||




Higher Cost of CAC Methods - correct answer✔✔Standards-based approach is not cost-
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




effective ||\\//||




Most empirical studies show that the cost of using a command-and-control approach is
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




higher than the least-cost method ||\\//|| ||\\//|| ||\\//|| ||\\//||




Uniform Technology-Based Standards NSPS Are Not Cost-Effective - correct
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




answer✔✔Uniformity disallows cost-effective solution ||\\//|| ||\\//|| ||\\//||




-Each source within an industry must meet same standard
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||

, -Cost-effectiveness requires equal marginal abatement costs (MAC), not equal abatement ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




levels



Mandated abatement technology may not be the least-cost approach ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




New Source Bias Dual Control Approach - correct answer✔✔Existing sources are controlled
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




by states, which have an incentive to set relatively lenient standards to avoid losing firms to
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




other states ||\\//||




In turn, firms have an incentive not to initiate new construction to avoid the more stringent
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




and more costly NSPS ||\\//|| ||\\//|| ||\\//||




Result is that the dual control approach perversely discourages construction of new and
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




presumably cleaner-running new facilities ||\\//|| ||\\//|| ||\\//||




Emissions Trading - correct answer✔✔For existing sources ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




-Bubble policy: plants can measure emissions of a single pollutant as an average of all
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




emission points ||\\//|| ||\\//||




-Emissions banking: a source can save emission reduction credits if it cuts emissions more ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




than required by law and can deposit these through a banking program for future use
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




For new/modified sources
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-Netting was devised for use in PSD areas by modified sources ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




--Ensures that any added emissions from a plant modification must be exactly matched by a ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




reduction from somewhere else within the same plant ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




-Offset plans were established for use in nonattainment areas by new or modified sources
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




--Ensure that emissions from a new or modified source are more than countered by the
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




reductions achieved by existing sources ||\\//|| ||\\//|| ||\\//|| ||\\//||

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