Natural resources and environmental economics UE Past Papers Questions.

Given the following Hedonic model: H=a+bP+cN+dA+eE which describes how much the residents of Morogoro Municipality are willing to pay for an improvement in the environmental quality they face; where H is Housing price; P is a vector of property variables; N is a vector of neighbourhood variables ; A is a vector of accessibility variables; and E is a vector of environmental variables. It is therefore, correct to argue that the coefficient “e” tells us how much.

1. E will vary if we change the housing prices (H)
2. H will vary if we change E
3. P will vary if we change E
4. N will vary if we change E
5. None of the above is correct

Answer / Solution

UNSOLVED

Given the following Travel cost model: where P is the total costs of travelling; S is the socio-economic conditions; Z is the quality of part; i  is the i ^th country or area  is the visits for the i ^th area. The coefficient tells us:

1. How many more trips an individual will take if quality improves
2. How much the quality of the park will improve if the number of trips is increased
3. How much the quality of the park will improve if the socio-economic condition of the individual is improved
4. How many more trips an individual will take if the total costs of travelling are minimized
5. None of the above is correct.

Answer / Solution

UNSOLVED

Two important equilibriums are normally observed in the utillisation of renewable natural resources. These are Biological and Bionomic equilibriums. Using graphical and algebraic illustration explain the differences between the two.

Answer / Solution

UNSOLVED

Explain Pareto-optimal allocation of two goods between two households using economic theory and the Edgeworth box. Assume an initial endowment level for the two goods which is Pareto-improving.

Answer / Solution

UNSOLVED

Differentiate between the “Kuznets Curve” and “Environmental Kuznets Curve” as applied to the study of the link between economic developmental and environmental degradation.

Answer / Solution

UNSOLVED