Explain the effects of the economy on the environment.

1.Explain the role of Economics of Natural Resources in environmental and natural resource management (20marks)
2.a)What is the meaning of “inward investment” with respect to economy -environment inter-linkages?(6marks)
b)State the functions of the environment in a simple economy.(7marks)
c)Explain the effects of the economy on the environment.(7marks)
4.An oil company is cötemplating extracting oil in Kerio Valley and is seeking an expert opinion on the economic viability of the project.You have been chosen to advise the company.Explain the basis for justification of the project as dictated in the economics of extraction.(20marks)
5.a)Explain the reasons why privately rational fishing exploitation decisions are not socially optimal.(15marks)
b)To what extent do”environmental problems”arise from the absence,or poorly defined,property rights? (5marks)
6.a)State how complete economic efficiency can be achieved.(6marks)
b)How can economic instruments be used to correct environmental and natural resource inefficiencies?(7marks)
c)Suggest the effective ways of preserving natural resources and environmental assets(7marks)








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