Environmental Economics — DU B.A. (Hons.) Economics Previous Year Question Papers

(a) Critically evaluate the differences between ecological economics and environmental economics. (9) (b) Discuss the key challenges and trends in solid waste management in Indian cities, highlighting major waste types, current management practices, and the impacts of improper disposal on health and the environment. (9) 2. (a) What is the Contingent Valuation approach? Specify the steps involved in the Contingent Valuation approach. What are its limitations? (b) How does equi-marginal principle ensure the cost-effective allocation of pollution abatement efforts across multiple polluters? (9) 3. (a) Describe the Utilitarian perspective of environmental protection, along with its limitations. (9) (b) Compare the advantages and limitations of technology standards and performance standards in controlling pollution. Discuss how flexibility, cost, and enforcement affect their effectiveness. 4. (a) "Providing too much or too little pollution would be inefficient". Explain. (9) (b) Examine the empirical evidence on Command and Control (CAC) and Market-Based Instrument (MBI) policies in developing countries. Also, explain some of the major issues faced by these countries in the effective implementation of these environmental policies. (9) (a) Suppose an individual's preference over environmental quality (4) and income to purchase market goods (M) can be represented by the utility function (i) At the income of Rs. 10, what is the individual's willingness to pay (WTP) for an increase in q from q = 2 to q = 4? (ii) What is the willingness to accept (WTA) in lieu of moving from 9 = 2 to q= 4? (iii) If the utility function is replaced by U(M, q) = M + q, interpret the impact on WTP and (b) Consider a firm that is competitive in the goods output market but a sole supplier of pollution, i.e., a monopolist in the provision of pollution (bad). Prove that a monopolist provider of pollution can manipulate the emission tax by reducing pollution below the efficient level. Also, shade the deadweight loss graphically. (9) 6. (a) Examine the success and/or failure of the Paris Agreement of 2015 given the commitments made by major developed and developing countries of the world. (9) (b) What are the hedonic price functions of air quality? In a market for similar but differentiated products such as housing, how would a consumer with different bid functions reach an optimal choice? 7. (a) A pulp mill has the right to discharge its waste into a river. Total damage function from discharge is given by: where Q is the quantity of waste discharged. The total benefit to the mill of discharging its waste into the river is : (i) What level of discharge would occur if the mill ignored the damage caused by its discharge and what is the socially efficient level of discharge? (4) (ii) If the mill ignores the damage it causes, what is the Pigouvian tax (in dollars per unit of discharge) that would result in the socially efficient level of discharge?