Environmental scienceLesson 6 of 6 in the course Environmental Protection and Negative Externalities

PPFs, Efficiency, and Economic Analysis of Environmental Projects

5 flashcards · 4 quiz questions · 5 match pairs · 5 fill-in sentences · English

Save course
Lesson progress
0 / 5

Your progress is kept in this browser only.Sign up to save it

Summary

This lesson explains how societies face tradeoffs between producing economic output and protecting the environment. A production possibility frontier helps illustrate both the opportunity cost of environmental protection and the difference between efficient and inefficient choices. The lesson also applies economic reasoning to the Keystone XL pipeline debate.

All flashcards

What is a production possibility frontier (PPF)?
A curve showing feasible combinations of two outcomes with given resources and technology.
What is the opportunity cost of greater environmental protection on a PPF?
The economic output forgone when resources are shifted toward more environmental protection.
What makes a choice productively inefficient?
At least one outcome can be improved without reducing the other.
How do efficiency and social preference differ?
Efficiency concerns resource use; preference concerns which efficient outcome society values.
How can market-oriented environmental tools reduce the cost of protection?
They use incentives and flexibility to help firms find lower-cost ways to reduce harm.

Quiz questions

  1. What is the opportunity cost of increasing environmental protection along a PPF?Answer: The economic output given up, with resources and technology held constant.
  2. Why is a point inside a production possibility frontier productively inefficient?Answer: At least one outcome can improve without reducing the other.
  3. Why does a PPF not identify which efficient combination society should choose?Answer: The preferred combination depends on society's priorities and circumstances.
  4. Why should an economic assessment of a pipeline include marginal external costs?Answer: They account for additional costs, such as environmental harm, borne beyond the project's direct participants.

Based on Principles of Economics 3e by Steven A. Greenlaw, David Shapiro, Daniel MacDonald (OpenStax), licensed CC BY 4.0. Adapted into a summary, flashcards and quizzes.

More in Environmental science

All Environmental science lessons
Environmental scienceHydropower: Systems, Impacts, and Global Energy Role5 flashcards · 5 quiz questions · 4 gamesPlay free →Environmental scienceCross-Border Environmental Externalities and International Cooperation5 flashcards · 4 quiz questions · 4 gamesPlay free →Environmental scienceCircular Economy: Principles, Business Models, Applications, and Policy5 flashcards · 5 quiz questions · 4 gamesPlay free →Environmental scienceParticulate Matter: Sources, Measurement, Impacts, and Control5 flashcards · 5 quiz questions · 4 gamesPlay free →Environmental scienceStratospheric Ozone Depletion: Chemistry, Impacts, and Recovery5 flashcards · 5 quiz questions · 4 gamesPlay free →Environmental scienceDrinking Water: Access, Quality, Health, and Treatment5 flashcards · 5 quiz questions · 4 gamesPlay free →