Economics of Climate Change and Natural Resources — DU B.A. (Hons.) Economics Previous Year Question Papers

Economics of Climate Change and Natural Resources Common Pool of Discipline Specific Elective a)SE) 1. (a) Define Bioeconomic equilibrium? Derive the steady-state equilibrium for an open-access fishery? (9) (b) Define the role of the "Precautionary Principle" in environmental risk management. What role does the discount rate play in the cost-benefit analysis of the long-temi effect of climate change? 2. (a) Derive the efficiency condition for present-value-maximising forestry. (9) (b) Distinguish between the Carbon sink and the Carbon permit price? Illustrate graphically the determination of carbon permit price? (9) 3. 4. 5. (a) Renewable energy supply faces intermittency issues. What are those? Discuss the four biases faced by renewable energy. (4,5) a) What are the support mechanisms put in place to promote renewable energy? Explain the competitive bidding process with the help of a diagram. (a) The OPEC behaviour in the international oil market has been categorised in two broad models. Explain the cartel model as a monopolist with the help of a diagram. What are the problems faced by the cartel? (9) (b) In the case of Energy Security, what are the indicators of dependence? Discuss (a) Define Hotelling's Rule. Explain with the help of diagrams what happens when there is a fall in the price of backstop technology. (b) What is a carbon tax? How does a carbon tax differ from a tradable permit? (9) 6. (a) Roberts argues that "divisions within the core and o.utside the core shape climate outcomes." Discuss the divisions outside the core (b)WhatdoyouunderstandbytheEnvironmentalKuznetsCurve?Isthiscurverelevant for both developing and developed countries? (9) 7. (a) Define Sustainability. Discuss strong and weak sustainability. (9) (b) "The composition of humanity's portfolio of capital stocks is changing, away from natural capital and toward other forms of capital". Do you agree? Explain. (9) 8. Write shortNotes on any three: a. Gross National Happiness b. Environmental Kuznets curve c. Preventive and adaptive measures. d. Renewable obligations e. European union carbon Trading system f. Revenue-neutral tax shift (b (rb0n Sınk {{ { (Carbon Permit Price) * ir‹ →{ { →ş (suport mechanisms) 0) 0 2 Energy Security Fat i, Patra d Fa (Indicators of egendene (Environmental Kuznets Curve ERC # 3114 8411 a. #*r {] gşİ} (Gross National Happiness) b 0{ →df d (Environmental Kuznets Curve) c. PaRe Vd 3taeo 34 (Preventive and Adaptive Measures) d. ad]axufia aíf9ra (Renewable Obligations) e. „Ì4 zE ŞÃ ZI SUlid} (EU Carbon Trading System) f. {|u+d-7CFET d FE (Revenue-Neutral Tax Shift)