In each case, indicate whether the statement as given is true/false/uncertain an

ID: 1208791 • Letter: I

Question

In each case, indicate whether the statement as given is true/false/uncertain and explain why. Points will be given for the explanation of your answer only. Write your answers as completely as possible.

1. Voluntary agreements designed to encourage emissions reductions by rms are unlikely to succeed, since rms have little incentive to participate and, when they do participate, they are unlikely to signicantly alter their overall level of emissions, since doing so is costly.
2. In his 2010 article entitled “Cap-and Trade: A Sucient or Necessary Condition for Emissions Reduction,” Michael Hanemann argues that the ability to trade permits in SO2 was essential (necessary) to the success of the US’s SO2 cap-and-trade program in the 1990’s.

Explanation / Answer

1. True

(As they are not government regulated and countries have no incentive to reduce production to reduce pollution, as it would lead to losses)

2. True

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In each case, indicate whether the statement as given is true/false/uncertain an

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