An electric utility may choose to invest in a new technology for controlling emissions rather than engage in permit trades. If MAC2 represents the new technology, how much will the polluter save at E1 compared to staying on its initial MAC,?
Q: Classify the following pollution-control policies as command-and-control or market incentive based.…
A: Meaning of Command Market or Planned Market: Under the commanding market, most of the portion is…
Q: Suppose the aggregate MAC function is 100 - 20W and aggregate MD = 5W for a polluting industry.…
A: MAC = 100 - 20W MD = 5W
Q: Discuss the pros and cons of the following methods for distributing the initial allocation of…
A:
Q: The main advantage of tradable pollution permits over Pigovian taxes is that...
A: Pigovian tax is the tax paid by the private individual on an activity that generate side effects to…
Q: Explain how a global-positioning antitheft device installed by one car owner can produce a positive…
A: Spillover is an economic benefit, cost, event, or effect that occurs from the happenstance of…
Q: Submit AL Which statement is TRUE with regards to the use of tradable permits for controlling carbon…
A: In economics, tradable permits are the government provided rights to a firm to generate a specfiic…
Q: No SPAM!! ONLY answer full STEP by STEP solution BY HAND . Why option C is true? Costs, Benefits €…
A: Socially optimum equilibrium is where marginal net private benefit is equal to marginal external…
Q: Compared with a standard, both tradable discharge permits and emission taxes a tend to be preferred…
A: The government has to look after all the possible problems and issues which are a cause of the…
Q: Discuss the concept of externalities and discuss the advantages and disadvantages of tradeable…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Suppose that a firm's marginal abatement cost function with existing technologies is MAC = 12 - E.…
A: In this question we have to find out the benefits of adopting the new technologies with the help of…
Q: Why do largest firms, who are also some of the largest polluters, have the resources to invest in…
A: Practicing environmental safety can assist with ensuring the earth's natural frameworks, yet for…
Q: The population of Outbacktown is 1,000 people. Each of them has a marginal benefit curve for…
A: Lindahl price is equal to the marginal benefit received by each individual.
Q: Is there a 'zero-externality' solution when it comes to poor air quality from pig farming, being the…
A: A negative externality takes place when the process of producing commodity results in harmful,…
Q: Suppose the private marginal cost of producing steel were constant at $45/ton and the marginal…
A: The marginal cost is the change in the total cost that arises when the quantity produced is…
Q: Since according to scientific evidence, accumulated greenhouse emissions would progressively reduce…
A: Sustainable economic development: It is a public drive based on local economies' exceptional…
Q: Imagine that in the state of California a chemical producing firms has a marketable permit that…
A: A "carbon credit" permits the owner to emit a specific amount of carbon dioxide or other greenhouse…
Q: The figure above shows a national marketable permit system for carbon dioxide. Which of the…
A: The permit price is determined by the supply of permits and demand for permits. The equilibrium…
Q: Combating emissions that lead to global warming differs from other types of pollution abatement…
A: The global warming is a worldwide concern. These occurs due to various emissions that leads to…
Q: The equation for the marginal cost of reductions is P=1+R*2 The equation for the marginal benefit of…
A: Marginal cost of reductions: PC =1+2R Marginal benefit of reductions: PB =33-2R where; R = Rate of…
Q: The marginal (external) damage cost from air pollutant emission is MD = 20 + Q where Q is the…
A: Optimum level of pollution is calculated when MC = MD thus, 200- 5Q = 20+Q 180 = 6Q Q = 180/6 = 30…
Q: Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E):…
A: The socially efficient level of aggregate emissions is achieved when marginal abatement costs and…
Q: Suppose there are 2 petrochemical companies that cause water pollution in the surrounding…
A: Marginal cost of company 1 is, MC1=150.e1 and marginal cost of company 2 is, MC2 = 50e2 where, e1…
Q: Distinguish between a carbon-tax and a cap-andtrade strategy for reducing carbon dioxide and other…
A: A carbon fee is a carbon emission pricing tool. It is considered to be one of the most pivotal and…
Q: With rental rates exceeding $3,000 per square foot per year, retail space in Causeway Bay, Hong…
A: Town planning is an important aspect of urbanization. Unchecked heights of building and higher…
Q: Many economists would consider an efficient level of pollution control to occur where the marginal…
A: Answer: An efficient level of pollution control occurs where the marginal benefit of reducing…
Q: The comprehensive environmental laws adopted in the early 1970s in the U.S. have been referred to…
A: In early 1970s, the US implemented laws to control pollution emissions in the country to protect…
Q: quantity
A: The concept that depicts the impact that is considered to be undesirable on a third party being…
Q: There are two polluters in an industry with the following cost functions: MAC1 = 182 - 0.14E1 MAC2 =…
A: We are going to calculate Marginal abatement cost and Total abatement cost to answer this question.…
Q: Suppose there are two firms that each emit 30 units of pollution, and the State Pollution Board…
A: ANS
Q: Suppose Erie Textiles can dispose of its waste "for free" by dumping it into a nearby river. While…
A: Hi! Thank you for the question but as per the guidelines, we answer up to three subparts at one…
Q: The social cost of carbon is measured as the welfare gain associated with the total tons of carbon…
A: Social cost: It means the total cost to society.
Q: Two polluters currently emit 10-tons of pollution each for a total of 20 tons. The two firms have…
A:
Q: Refer to the diagram. With MB1 and MC1, society's optimal amount of pollution abatement is Multiple…
A: At Q1 is the point where the marginal benefit equals the private marginal cost while the social…
Q: two types of consumers( workers an retirees) share a community with a polluting cheese factory. the…
A: a.The externalities caused by the cheese factory are adverse and are negative externalities. Thus,…
Q: What are the estimated abatement cost curves? What would the pollution standard be if they achieved…
A: The cost of reducing environmental negatives such as pollution is known as abatement cost.
Q: If the power generating firm were allowed to ignore the social cost of its emissions, what would be…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Which of the following statements about pollution taxes, cap and trade, or command-and-control…
A: Pollution Tax is the type of taxation that charges polluters for the damages that their actions have…
Q: Consider the market for trees in a public park. These trees are a public good that give benefits to…
A: a. Without the involvement of the Government, each group will set their marginal willingness to pay…
Q: Consider regions A and B. In region A, the marginal benefit associated with pollution cleanup is MB…
A: We have to put marginal benefit equal to the marginal cost to find out the optimal level of…
Q: Externalities: Suppose the daily inverse demand curve for gasoline in Portland is given by P = $100…
A: Externality refers to the external cost or benefits that are imposed on someone without their…
Q: Compared with a standard, both tradable discharge permits and emission taxes tend to be preferred by…
A: The government has to look after all the possible problems and issues which are a cause of the…
Q: Suppose there are only two polluting firms, called A and B, with the following marginal abatement…
A: (A) On Assuming that each TEP permits its holder to emit 1 ton, in a perfectly competitive market…
Q: In a market for chemicals, the demand function is P = 200 – Q. The private marginal cost for the…
A: Externalities is the negatives spillover effect of an economic activities of person which have…
Q: There is a road between the suburbs and downtown. The road is congested at rush hour, so each…
A: A negative externality is a cost suffered by a third party due to an economic transaction. Negative…
Q: The demand for drive-in movies is given by P = 20 – 0.1Q. The supply curve for drive-in movies is…
A: Given, Demand, P = 20 - 0.1Q Supply, P = 0.1Q External marginal benefit EMB = 2 - 0.01Q The social…
Step by step
Solved in 3 steps with 3 images
- The rows in Table 12.7 show three market-oriented tools for reducing pollution. The columns of the table show three complaints about command-and-control regulation. Fill in the table by stating briefly how each market-oriented tool addresses each of the three concerns.Would environmentalists favor command-and-control policies as a way to reduce pollution? Why or why not?Show the market for cigarettes in equilibrium, assuming that there are no laws banning smoking in public. Label the equilibrium private market price and quantity as Pm and Qm. Add whatever is needed to the model to show the impact of the negative externality from second-hand smoking. (Hint: In this case it is the consumers, not the sellers, who are creating the negative externality.) Label the social optimal output and price as Fe and Qe. On the graph, shade in the deadweight loss at the market output.
- Radio stations, tornado sirens, light houses, and street lights are all public goods in that all are nonrivalrous and nonexclusionary. Therefore why does the government provide tornado sirens, street lights and light houses but not radio stations (other than PBS stations)?A country called Sherwood is very heavily covered with a forest of 50,000 trees. There are proposals to clear some of Sherwoods forest and grow com, but obtaining this additional economic output will have an environmental cost from reducing the number of trees. Table 12.11 shows possible combinations of economic output and environmental protection. Sketch a graph of a production possibility frontier with environmental quality on the horizontal axis, measured by the number of trees, and the quantity of economic output, measured in corn, on the vertical axis. Which choices display productive efficiency? How can you tell? Which choices show allocative efficiency? How can you tell? In the choice between T and R, decide which one is better. Why? In the choice between T and S, can you say which one is better, and why? If you had to guess, which choice would you think is more likely to represent a command-and-control environmental policy and which choice is more likely to represent a market-oriented environmental policy, choice Q or S? Why?Consider the case of global environmental problems that spill across international borders as a prisoners dilemma of the sort studied in Monopolistic Competition and Oligopoly. Say that there are two countries, A and B. Each country can cheese whether to protect the environment, at a cost of 10, or not to protect it, at a cost of zero. If one country decides to protect the environment, there is a benefit of 16, but the benefit is divided equally between the two countries. If both countries decide to protect the environment, there is a benefit of 32, which is divided equally between the two centuries. In Table 12.10, fill in the costs, benefits, and total payoffs to the countries of the following decisions. Explain why, without some international agreement, they are likely to end up with neither country acting to protect the environment.
- Plants A and B emit 12 tons and 6 tons of carbon dioxide (CO2), respectively. MAC(marginal abatement costs) for a = 12 - Ea, MACb=12-2Eb MD(marginal damage) = 1/3*E (E indicates CO2 emission) What is the social optimum for power plants A and B to reduce CO2 by some amount, and how much reduction cost each power plant bears?Assume that the market for tradable emissions permits by power plants has been operating efficiently for severalyears. An engineering firmthen invents a lower cost device for pollution abatement. What happens to theequilibrium market price of a tradable permit, and why? Draw a supply and demand diagram, with a fixedsupply of pollution permits, along with your answer.Has the socially optimal amount of pollution increasedor decreased? ExplainSuppose residents of Toadhop live on the Quabache River, a river prone to flooding. Suppose there are 1,000 (type A) people who value flood control more than the 1,000 (type B) people. TypeADemandQD =100−P TypeBDemandQD =50−P where Q measures the quality of flood control. Refer to Scenario 2. If the price of a unit of flood control is $100,000 and the citizens of Toadhop did not work together, the amount of flood control purchased would be (a) 0. (b) 10. (c) 25. (d) 70. Refer to Scenario 2. If the price of a unit of flood control is $100,000 and the citizens of Toadhop gather for a townhall meeting to find the socially optimal level of flood control, and they are successful, how much will each type B individual contribute per unit of flood control? (a) $25 (b) $50 (c) $75 (d) $100 Refer to Scenario 2. If the price of a unit of flood control is $100,000 and the citizens of Toadhop gather for a townhall meeting to find the socially optimal level of flood control, and they are…
- It is discovered that production of painclear damages groundwater quality – this affects just one party: Greenview Nature Park (a park run by the local council which people can access, for free, for recreation). The value of the damage caused is £48 per litre of paint produced – so the pollution damage caused when output is 1 litre=£48, the 2 nd litre causes another £48 of damage, so pollution damage caused when output is 2 litres=£96. This damage happens and is the same whenever XY produces, whatever the level of output (same if it produces 1 litre of or 1 000 000 litres of painclear - each additional litre imposes an additional £48 of pollution costs). The drug has no side effects on consumers. (the clarifying information in red was added on 21/12/23) 1.Create and explain a new diagram which shows relevant costs, price and levels of output if XY produced the optimal quantity of painclear from a societal perspective. 2. Assume XY and Greenview can negotiate. Create and explain 2 new…ACME Industries produces steel near a river that nearby residents liked to swim. A by-product of steel produced by ACME Industries is toxic sludge that pollutes the river. Demand for steel by consumers in tonnes is given by QD = 90 - 5p. The Private Margiinal Cost per tonne of steel produced ACME Industries is given by the supply curve QS = 25p. Each tonne of steel produced creates external marginal damage on Wimmera of $1.20 due to decreased water quality. The government is considering imposing a tax on the market to correct the externality. 4. Following imposition on collective tax, the equilibrium quality is: 5. What is the deadweight loss that occurs if the collective tax is not imposed? 6. What fraction of the economic incidence of the tax falls on steel consumers?A corrective tax on pollution O a. sets the quantity of pollution. b. determines the demand for pollution rights. c. reduces the incentive for technological Innovations to further reduce pollution. d. sets the price of pollution. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.