Who’s in Charge?
What agency enforces environmental laws like the Clean Air Act?
Environmental Protection Agency (EPA)
What is a cost that affects third parties and is not included in market prices?
Externality
What process compares the costs of a policy to its benefits?
Cost-benefit analysis
Which agreement aims to limit global temperature rise below 2°C?
Paris Agreement
What type of policy sets maximum allowable pollution levels?
Regulatory standard
What law requires environmental impact statements for major federal projects?
National Environmental Policy Act (NEPA)
What is government financial support to lower production costs called?
Subsidy
What should policymakers do if benefits outweigh costs?
Approve/adopt the policy
Which treaty regulates international trade of endangered species?
CITES
What economic concept explains why markets overproduce pollution?
Market failure
Which law regulates atmospheric emissions from factories?
Clean Air Act
What economic tool places a tax on carbon emissions to discourage fossil fuel use?
Carbon tax
If a regulation costs $10 million but prevents $50 million in damages, what should be done?
Approve the regulation
What problem occurs when some countries benefit from others reducing emissions without participating?
Free-rider problem
What policy charges drivers a fee to enter high-traffic areas to reduce emissions?
Congestion pricing or pollution fee
What process evaluates environmental impacts before major federal construction projects?
Environmental Impact Statement (EIS)
What system allows companies to buy and sell pollution permits under a set limit?
Cap-and-trade
Why is it difficult to evaluate endangered species protection using cost-benefit analysis?
Biodiversity benefits are difficult to assign monetary value.
Why are international agreements harder to enforce than national laws?
There is no single global enforcement authority.
Why combine regulations with economic incentives?
To increase effectiveness by influencing both legal compliance and market behavior.
If a state sets weaker pollution standards than federal law, which standards apply?
Federal standards apply because they set minimum requirements.
What is the likely long-term effect of shifting subsidies from fossil fuels to renewable energy?
Renewables become more competitive and fossil fuel use decreases.
Why might a policy with short-term costs but long-term environmental benefits still be approved?
Long-term benefits outweigh short-term costs.
What principle argues that developed nations should reduce emissions more than developing nations?
Common but differentiated responsibilities
What problem is shown when a country signs the Paris Agreement but expands coal use?
Policy implementation gap (or enforcement gap)