THE BMZ ACADEMY
@061 262 1185/068 053 8213
BMZ ACADEMY 061 262 1185/068 053 8213
, BMZ ACADEMY
Table of Contents
Question 1: Discuss the different incentive-based policies which are available in environmental
economics. (10 Marks) .......................................................................................................... 3
Types of Incentive-Based Policies ..................................................................................... 3
Pigouvian Taxes (Environmental Taxes) ........................................................................... 3
Subsidies for Clean Technologies ..................................................................................... 3
Tradable Permits (Cap-and-Trade Systems) ..................................................................... 3
Deposit-Refund Systems................................................................................................... 4
Performance Standards with Tradable Credits .................................................................. 4
Question 2: Explain and graphically illustrate whether one standard of emissions can be
simultaneously efficient in a rural and urban area. (15 Marks)............................................... 4
Urban Areas ...................................................................................................................... 4
Rural Areas ....................................................................................................................... 4
Graphical Illustration ......................................................................................................... 5
Question 3: Analyse the static perspectives of the relationship between economic growth and
the environment in developing countries. Use a graph to illustrate your answer. (10 Marks) . 6
Environmental Kuznets Curve (EKC) ............................................................................. 6
Static Perspective in Developing Countries ....................................................................... 6
Early Stages of Development ............................................................................................ 6
Mid to Late Development .................................................................................................. 6
Graphical Illustration ......................................................................................................... 7
Question 4: Describe the concept of technology transfer and discuss ways through which
developed countries can implement technology transfer to developing countries. (15 Marks)7
Concept of Technology Transfer ....................................................................................... 7
Methods of Implementing Technology Transfer ................................................................. 8
References ........................................................................................................................... 9
2|Page