Student name: Exam Foundations of Ecological Economics 10.00-12.00h, January 30, 2013 This is a closed book examination.

The exam consists of 10 questions. For each question you can receive a maximum of 1 point. Answer the questions concisely and in English, and please write as clearly as possible. Do not use space outside the boxes. Question 1 What is the difference between a pecuniary and a technological externality? Are these externalities exceptions? Motivate your answers. Difference:

Exceptions?

Student name: Question 2 Show in the diagram below, using the notion of an abatement-cost curve, that a pollution tax is dynamically efficient, meaning that it can stimulate the adoption of a new technology. Indicate also in the figure what happens then to the level of abatement.

Diagram

Student name: Question 3 How would you evaluate the Kyoto protocol from the perspective of the policy criteria efficiency, effectiveness and equity? Motivate your answers. Efficiency:

Effectiveness:

Equity:

Student name: Question 4 What is your position in the growth debate and why? Give a main theoretical and empirical argument. Explain an obvious policy implication of your position. Position: Theoretical argument:

Empirical argument:

Policy implication:

Student name: Question 5 Describe the functioning of the environmental policy instrument of tradable pollution permits. What is its advantage over a regulatory tax and command-and-control (e.g., a uniform standard)? Description:

Advantage over a tax:

Advantage over a uniform standard:

Student name:

Question 6 "Economies can be considered complex systems". Please make use of complex systems' characteristics to build your answer. Explain:

Student name: Question 7 One founding text of ecological economics is Nicholas Georgescu-Roegen's "The entropy law and the economic process" (1971). Could you please explain briefly why GeorgescuRoegen thought the Entropy Law was relevant for the industrial economy and therefore also for economics? Explain:

Student name: Question 8 Kosoy and Corbera (2010) describe three traits in the commodification of ecosystem services. Please explain each of them and highlight three additional ethical/methodological critiques to such commodification (indicating relevant authors) Trait 1:

Trait 2:

Trait 3:

3 additional critiques:

Student name: Question 9 Explain why it is important and useful to talk about climate change governance and not of climate change policy only when it comes to describe and analyse both climate mitigation and adaptation efforts across scales (from global to local levels). Reflect on issues such as participation, authority and power, and accountability, among others. Explain:

Student name: Question 10 Of the following list of ecosystem services (see Table below): a) Note the ecosystem service category they belong to according to the Millennium Ecosystem Assessment framework and The Economics of Ecosystems and Biodiversity report; b) Indicate the type of unit or indicator you would use to quantify each ecosystem service flow in biophysical terms; c) Highlight the economic valuation method that may be most suitable to capture its (monetary) value. Ecosystem service Climate regulation Water purification Habitat for species Ecotourism Erosion control Ecosystem service category Unit / indicator Economic valuation method

d) In the context of existing controversies regarding the use of money tags for valuing non-market ecosystem services, choose from the Table above the ecosystem service which monetization would be most problematic according to you and explain why. Chosen ecosystem service: Reasoned argumentation:

10