Environmental and Agricultural Economics

ENVIRONMENTAL AND AGRICULTURAL ECONOMICS

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ENVIRONMENTAL AND AGRICULTURAL ECONOMICS

Question 1: Conditions the Technology Should No Longer be Used

This particular technology is highly profitable, and it has tremendous benefits to consumers in terms of huge surplus. However, it produces unintended results or side effects on the overall societal welfare. Therefore, the technology should never be used under the following circumstances;

• If technology leads to environmental pollution such that the societal resources are contaminated. For instance, pollution of water, soil, and atmosphere will greatly affect the societies' overall welfare.
• If the technology produces defective commodities that are of low quality. Even though it benefits in terms of surplus, the technology may produce defective commodities that may negatively affect society, and hence should no longer be used.
• Suppose the technology application is unlawful, such that it is not following the government's nutritional standards. Any defiance in applying the technology in production may harm society and hence should no longer be used.
• The technology should no longer be applied if the technology will lead to unemployment to the people around the production site.

Question 2: Fishing Licenses for Anchovies

Impacts of the Licenses to Employment in Fishing and Fishing Fleet

In the long-run, employment in the fishing industry will reduce. People will be acquiring defective licenses implies that the number of anglers in the short-run will increase. However, since Anchovies is a small saltwater fishing ground, it will not accommodate many anglers in the long-run. Therefore, fishes will be depleted from the ground, and this implies that there will be no fishes in the long-run. Many people will finally lose employment in the fishing industry.

The government will not maximize revenue from taxing the economic profits of the fishing fleets. Since the employment in the fishing industry will decline, the government will have few or no individuals to tax in the long-run. Therefore, the tax revenue will decline, and it would be impossible for the government to maximize tax revenue.

Question 3: Food Crop Research

Food crop research was used to identify and increase the production of food crops in the world. It has the following key economic characteristics.

• Most of the food crops can be grown without the application of fertilizers, and hence are economical.
• Food crop research is very expensive since it incorporates various research procedures.
• The research discourages fertilizers in food crop production since the fertilizers are expensive compared to natural production.

Food crop research limited the start of the Green Revolution simply because food crop research discouraged using inorganic fertilizers, claiming that the fertilizers were expensive than organic fertilizers. Again, food crop research aimed to discover specific environmental conditions instead of inorganic or organic fertilizers that the Green Revolution anticipated.