Date: 10-11-20 Examination Time (Time Allowed): 90

Minutes
Fatima Jinnah Women University Department of Economics
Name of Instructor: Dr. Imran Saqib Semester: B. Econ-VII & M. Econ-III
Khalid
Course Title: Environmental Economics Course Code: Eco-570

Term: Midterm Total Possible Points: 20

1. What is the concept of sustainable development? Is it relevant to us in a

developing country like Pakistan? Why or why not. (4)

sustainable development:

sustainable development is discover economic and industrial sector and has impact on the
economic development. Sustainable development is the idea that human societies must
live and meet their needs without cooperating the ability of future generations to meet
their own needs. The “official” definition of sustainable development was developed for
the first time in the Brundtland report in 1987.
Pakistan has sustainably development on future generation to convert to current
generation Pakistan has focused four additional priority objectives to some degree in
endorsing sustained and reasonable. economic development, mainly, over the last few
years and present government planning, sustainable development is relevant in Pakistan
and make pressing on the development in the countries and rank the sustainability of
development is internationally used most.
Sustainably of the developed in Pakistan in fiscal deficit and the macro economics.
Pakistan is directly influenced by the factors like, budget deficit, Trade deficit, inflation,
joblessness and increasing burden of debt and debt-servicing etc.

2. Discuss 3 types of environmental problems discussed in class? What policy

measures could be adopted to address them? (4)

The three-environment issue of Pakistan discuss is climate change climate change, water
pollution and water abilities
water pollution is caused such as chemicals, waste and certain microorganisms
contaminate a body of water, water pollution delivering it destructive for human use or
utilization. natural issue in Pakistan is to set up legitimate sewage treatment and the
board framework. The agricultural sector of the country also needs to reduce its use of
pesticides and fertilizers, as these contain harmful chemicals that easily find their way
to water bodies and lead to pollution.
Climate change is most of Global warming is rise in the average temperature in earth’s
climate system. Due to global warming many animals living in forest are dying. Our
atmosphere is getting hooter and turbulent due to global warming. One reason is the
burning of fossil fuels is inflicting the number of CO2 in the atmosphere to extend. On
the other hand, individual people say that global cooling is caused by solar activities of
the sun; it can not be exactly accurate, as a result of satellite sensor might have some
error when detecting the solar activities. Therefore, there might be errors about that.
Water Accessibility is a rising demand for resources in the face of a finite supply. Water
provides a particularly interesting example because it is so vital to life.
While adopting policy reforms and investments will be demanding, the costs of inaction
are far higher. The future will be thirsty and uncertain, but with the right reforms,
governments can help ensure that people and ecosystems are not left vulnerable to the
consequences of a world subject to more severe water-related shocks and adverse rainfall
trends

3. Does Economics have a role in addressing the environmental problems

highlighted above? How so? (4)

The economics have addressing the role of the climate change water assebilities and the
other thing of the environment. social orders react to difficulties will rely to a great extent
upon the conduct of people acting separately or by and large. Monetary investigation
gives a staggeringly helpful arrangement of apparatuses for anybody keen on
comprehension and additionally adjusting human conduct, especially despite shortage. As
a rule, this investigation calls attention to the wellsprings of the market framework's
versatility as encapsulated in negative criticism circles. In others, it gives a premise not
exclusively to recognizing the conditions where markets fizzle.

4. Please define and discuss the concept of equity and talk about in the context of
environmental externalities? (4)

. Equity is measured for accounting purposes by subtracting liabilities from the value of
an asset. Equity refers to the principle of fairness. While it is often used interchangeably
with the related principle of equity. Environmental externalities is that refer to the
economic concepts of non-compensation environmental effect of production and
consumption. that is caused in the consumer utility and enterprise cost outside the market
mechanism. For example negative externality is environment problem Externalities can
be both positive and negative, the most prevalent version being the latter in the form of
environmental pollution.
5. How can externalities be accounted for it in development planning? What tools
can we utilize in this regard. (4)

Four types of externalities considered by economists. Positive consumption externalities,

negative consumption externalities, positive production externalities, and negative
production externalities. Effect of both negative and positive externalities on market
efficiency, economists and policymakers intend to address the problem. The
“internalization” of the externalities is the process of adopting policies that would limit
the effect of the externalities on unrelated parties. Generally, the internalization is
achieved through government intervention. Economics and marginal benefit or marginal
rxternailities. They often use quantitative method cost of damage cost of control. Or
hybrid methods for measuring externailities, When either private negotiations or
government action lead the price to the party to fully reflect the external costs or
benefits of that party’s actions.