2. Tentative Plan for Final Exam
10-20 pts. 5-10 multiple choice (for VMT lectures)
~20 pts. 10 definitions of acronyms, common
phrases) (eg, CAFE), with short explanations (1-2
sentences)
~30 pts. 4-6 short answers (~1 paragraph)
~30 pts. ~2 short essays (out of 3-4 choices) (<1
page each)
3. Final Exam
Key concepts: different policy
approaches; mandates vs regulations;
role of technology and behavior, trends,
externalities, three-legged stool, future
of oil, elasticity, LCA, pricing, “if you
can’t measure it you can’t manage it,”
“no silver bullets” (need portfolio)
4. PROBLEMS
Air Quality
Local air quality
Health impacts of pollution
Energy
Oil prices, costs of travel and goods transport
Oil imports, security, geopolitics
Climate Change
Environmental, economic impacts
Currently active policy area (e.g. California’s AB 32, low carbon fuel
standard)
5. Key overarching issues
• Are we running out of oil?
• Why are we interested in alternative fuels?
• What should we do about climate change?
• Is air pollution a severe problem?
• Is technology the solution to energy, air
pollution, and climate problems?
• How do we use policy to manage car use,
and why?
6. Systems challenges
How to transform vehicles, fuels, and mobility?
Case study: Why are fuel cell vehicles arguably the most difficult
technology to introduce? Why did EVs supplant FCVs as the
“fuel du jour”?
7. Externalities
• What are they?
– Impacts (costs or benefits) not directly involved in an
economic decision
• Why do we care?
– Sometimes the free market system does not fully account for
all economic costs and benefits to society
– This can result in socially sub-optimal results
• Transportation examples: air pollution, petroleum
dependence, congestion, climate change
Money
Consumer Firm
Goods
Consumption Production
External impacts on others not
involved in economic decision
8. Primary Policy Approaches to Deal
with Externalities
– Regulatory instruments – Government could ban
(or restrict) air pollution, enforce with inspectors
and lawyers
– Pure market instrument (“Pigouvian” tax) –
Government could tax polluters in accordance
with the social costs they generate
– Marketable permits – Government could issue
“pollution permits,” and allow the polluters to
trade them to achieve pollution reduction at
lowest cost
9. Key policy design issues
• If can’t measure it, you can’t manage it
(methodological and data issues)
• Role of causality—esp for AQ and climate change
• Who should be made responsible for solving a
problem—keeping in mind jurisdictional challenges
(who’s in charge and can do something about it)
• Market based approaches vs regulatory and
voluntary instruments
