Here's the exam alternative: write an economic critique of federal environmental policies addressing one of the following issues::

• acid rain (Clean Air Act)
• air pollution from automobiles (Clean Air Act, ISTEA, ...)
• water pollution from non-point sources (Clean Water Act)
• endangered species protection (Endangered Species Act)
• cleanup of abandoned toxic waste dumps (CERCLA, SARA)

1. Briefly summarize the objectives, political history and current regulatory provisions of this policy.  How successful has it been?  Do you think its total benefits outweigh its total costs?  Do its marginal benefits equal its marginal costs?  Explain why or why not.
2. Discuss the command-and-control aspects of this policy.  What types of standards does it mandate (technology standards, effluent standards, ambient standards, etc.)?  What inefficiencies are likely to arise from this approach?
3. To what extent does this policy rely on economic incentives?  What inefficiencies are likely to arise from reliance on incentives?
4. Explain how this policy could be modified to maximize its economic efficiency.  How might it modify and/or rely more on economic incentives rather than command-and-control?  What political or social constraints might frustrate this policy reform?