1. The United States seems to be quite enamored with sport utility vehicles (SUVs), in spite of the fact that their gas mileage is considerably poorer than most sedans. To graphically bring home the environmental irresponsibility of SUV owners, two men in the San Francisco Bay area dreamed up a scheme to address what they perceived to be a market failure. Uninvited, they stuck homemade bumper stickers on hundreds of SUVs. The bumper stickers read, “I’m changing the environment! Ask me how!” 104
a. What effect do you think these self-appointed environmental police sought from their actions?
b. What effect do you think they actually had?
2. Airplanes are a significant contributor to greenhouse gases. Comment on the following proposal: Each person receives an annual allowance for flights, fuel, gas, and electricity. If a person’s use exceeds the allowance, he will have to purchase “carbon points” from someone under their limit. 105