Question

As the extent of environmental protection expands, would you expect the marginal benefits of environmental protection to rise or fall? Why or why not?

Short answer

As the extent of environmental protection expands marginal benefits of environmental protection will fall.

Step-by-step solution

Step 1. Definition of Environmental Protection

Environmental protection refers to the efforts made towards maintaining or restoring the quality of environment.

Step 2. Graph for explaining the reason for falling of marginal cost benefits an extent of environmental protection

Step 3. Explaining the graph

When the quantity of environmental protection is low so that pollution is extensive - for example, at quantity Q1 - there are usually numerous relatively cheap and easy ways to reduce pollution, and the marginal benefits of doing so are quite high. At Q1, it makes sense to allocate more resources to fight pollution. However, as the extent of environmental protection increases, the cheap and easy ways of reducing pollution begin to decrease, and one must use more costly methods. The marginal cost curve rises. Also, as environmental protection increases, one achieves the largest marginal benefits first, followed by reduced marginal benefits. As the quantity of environmental protection increases to, say, Q2, the gap between marginal benefits and marginal costs narrows. At point Q3 the marginal costs will exceed the marginal benefits. The marginal benefits of expanding environmental protection are generally declining, because one can take the steps that provide the greatest benefit first, and steps that provide less benefit can wait until later.