Problem Set #7: The Market and the Environment

Due Monday, Feb. 3.

Prof. Foldvary, Econ 12

12 pts. Do either 7a or 7b.

One page double-spaced is sufficient.

Please type, print, or write legibly.

The report must be you own and not a copy of someone else's.

7a.

Attend and report on the Civil Society Institute presentation by Terry Anderson on "Markets and the Environment" on Jan. 29, 2003; 5:30-7 PM, Brass Rail, Benson Center. Anderson is the executive director of PERC, which studies market-based approaches to environmental issues.

Only those who attend may do 7a.

Your Civil Society report should first briefly summarize what was said, note any major questions discussed, and then at least half the paper should provide your own reaction, reflection, and analysis. Questions to consider:

Does environmental protection necessarily reduce economic output?

Does current government policy harm the environment with disincentives?

Can private organizations and private ownership protect habitat and species?

How can we apply economic theory to most efficiently protect the environment?

Would a pure free market have much or little environmental damage?

7b

Do research and answer the above questions. The PERC web site is:

http://www.perc.org/

What private and market-based examples are there of environmental protection?

Contrast the effect of command-and-control regulations versus market incentives.