c2b_default

SoSe16 Int. Environmental Economics and Int. Political Issues

Welfens

Welfens

10
0.0 (0)
R. M.
Study
R. M.
Diese Lernkarten bieten einen Überblick über die Grundlagen der internationalen Umweltökonomie und politischen Fragen auf Universitätsniveau. Sie behandeln Themen wie erneuerbare und nicht erneuerbare Energien, die Energiekette, Umwelt als öffentliches und gemeinschaftliches Gut, Marktversagen und die Tragik der Allmende. Die Karteikarten sind besonders nützlich für Studierende der Volkswirtschaftslehre, die sich mit den wirtschaftlichen und politischen Herausforderungen im Bereich der Umwelt und Energie auseinandersetzen möchten.
Flashcards
10
Students
0
Language
German
Category
Macro-Economics
Level
University
Created / Updated
23.05.2016 / 25.05.2016
  • 1  / 10

Flashcards

III.1 Market Failure

  1. non-rival -> under-provision of Public Goods
  2. non-exclusion -> Tragedy of Commons/Allmende: overuse
  3. Externalities

III.2 Envionment as a public good

Problem No. 1: under-provision of public good

  • each player gets an equal share but cooperators have to additionally bear the costs of their contributions
  • free-ride problem
    -> leads to rational/dominating solution "no investments"
    -> leads to a deadlock in a state of mutual defection

Solution: public goods should not be allocated through the market merchanism, in orde to prevent a misallocation of ressources
 

III.3.1 Environment as a common good

Problem No.2: Tragedy of the Commons

"When doing what's good for u isn't good for u." - Hardin 1968

  • Private optimum:
    • Average Revenue = Marginal Private Cost
    • 2€(48-2A production function) = 8 private costs => A=22
  • Social optimum:
    • Marginal Revenue = Marginal Private Cost
    • Profit: Pi= 2€*A*(48-2A)-8A
    • Pi'= 88-8A = 0 => A**=11

III.3.2 Environment as a common good

Problem No.2: Tragedy of the Commons
-> 2 Solutions

  1. Regulating the use of the resource
  2. Creating and allocating property rights to the resource

III.4 Conclusion

  • enviroment as public good: 1. non-rivalry and 2. non-excludability
    -> market failure: free-riding -> under-provision
  • enviroment as common good: -> overuse

Governmental intervention is required.

 

I.1 The natural environment

  • closed environmental system -> we have neg. externalities
  • Y= F(K,L) -> Y=F(K,L,E)
  • rise of waste, which is discharged into the natural environment

 

I.2 The Energy Chain

  1. Primary energy sources: occur in the nature, mostly not directly useful -> convesion into
  2. Secondary energy sources / End-energy: are transported to the "consumers"
  3. Useful-energy: heat, hot water, light, sound
  4. Energy services: warm rooms, hot water, lighting rooms

I.3.1 Renewable vs. Non-Renewable

RE-Problems

flow-resources vs. stock-resources

  • difference lies in whether the level of current use affects future availability
  • RE-Problems:
    • high costs
      • acceptance prob
      • installation and grid costs
    • volatility
      • storage
      • pump-storage-hydro-powerstation

I.3.2 Feed-in-volatility

Merit-Order

  • Shifting supply curve to the right
    • prices must decease, but they are stable or even increase
  • cuz of high energy production
    • we have to sell them to neg. prices

I.3.3 Reserves vs. Resources

  • Reserves#
  • Resources

Study