TPP

Question 1

what are the aims of TPP(2)

Answer 1

• reduce pollution (CO2 emissions)
• encourage green production methods

Question 2

what type of approach is a TPP

Answer 2

market based approach

Question 3

what is an alternative approach to TPP

Answer 3

blanket regulation approach - redistributes CO2 emissions across all firms in the market

Question 4

what choices do the firms have when deciding to keep/increase CO2 emissions(2)

Answer 4

• go green and reduce the emissions and sell the excess permits
• buy excess permits

Question 5

what does going green depend on

Answer 5

the cost comparison between going green and buying TPP

Question 6

evaluation points for TPP

Answer 6

• depends on the level of enforcement in the market (tracking emissions of each firm)
• gov failure

Question 7

what are 3 examples GOV failure that can arise from introducing TPP

Answer 7

• increasing of black markets for permits/pollution
• passed on cost to the consumer(higher prices)
• increase in unemployment as firms move to other countries with less regulation