How do taxes, pollution charges, and cap-and-trade work to reduce emissions?When a cap-and-trade is implemented _______. When a cap-and-trade is implementedO A. the government gives pollution permits to the firms that pollute the least and other firms either decrease their pollution or leave the marketO B. polluting firms determine the efficient quantity of pollution and the efficient quantity of pollution permits, which they allocate among themselvesOC. the government subsidizes polluting firmsO D. the government determines the efficient quantity of pollution and firms buy and sell the allocated pollution permits

Carbon emissions are harmful for all the beings living in the environment. It is very important to…

Answered: How do taxes, pollution charges, and…

Business

Economics

How do taxes, pollution charges, and cap-and-trade work to reduce emissions?

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter10: Externalities

Section: Chapter Questions

Problem 10PA

See similar textbooks

Related questions

Q: The Montreal Protocol is O the agreement between countries to reduce the amount of ozone in the…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: 2) In the absence of any correction for national security and climate change considerations, does…

A: 2) When there is no correction method available for national security and climate change, the market…

Q: Outline the important macro- and micro- environmental factors of nestle that would need to be…

A: Economic business environment is the environment in which a business organization operates and runs…

Q: 1.The United States and other countries have a long history of using __________. This approach will…

A: Greenhouse gases is one of the dangerous pollutants emitted by the factories and arises due to…

Q: Consider an emission tax and an emission standard as regulatory policies. a. Which policy, an…

A: Emission tax: Emissions taxes, which are based on the quantity generated by a business, and…

Q: Can you assess how relevance of the carbon tax may be different for fossil fuels producers and…

A: Government needs money to fund the development process in the country . For this government collect…

Q: Explain how each of the following work: a green tax, a subsidy, and an emissions trading system.

A: Taxes and subsidies are two important concepts used by the government to influence the production of…

Q: 2. If the US has a population of 330 million people, the average annual beef consumption in the US…

A: 2) The total beef consumption in US would be given as = Population in US* average annual beef…

Q: By what percentage is the U.S. population projected to increase between 2014 and 2030? Do you think…

A: The United States' total population in 2013 was 316.1 million. The population of the United States…

Q: The Kaya identity states: F = P* (G/P) * (E/G) (F/E). Explain in words what F, as well as each of…

A: Greenhouse gases has been a major concern for all the countries across the world for the past few…

Q: Explain the term public goods with examples

A: Non-excludable: - it is a condition where a person cannot stop another person from using a good or…

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: What elements does an economically sensible solution to limiting greenhouse-gas emissions to prevent…

A: Global Warming:- The term "global warming" refers to an increase in the average temperature of the…

Q: Discuss if forests should be considered as global public goods or not

A: In economics, goods are categorized into four main types on the basis of certain features. These…

Q: 1. Consider ten countries that decide simultaneously and independently on the own contribution to…

A: Introduction We are going to find the equilibrium using single variable optimization techniques.…

Q: The following figure (Figure 10.4 on your textbook) shows the present value of 1 dollar of climate…

A: Answer -

Q: Economists offer two major potential policies to reduce our greenhouse gas emissions: pollution…

A: Pollution tax is a tax levied on the producer who spread pollution by his/her production process.…

Q: constitutional law for environmental laws in the Philippines on trend on the current situation of…

A: For a nation like the Philippines - one of the most megadiverse nations on the world, wealthy in…

Q: How can UNIDO address the negative environmental impact of the semiconductor industry while…

A: Answer -

Q: It has been suggested that Australia has one of the highest per capita GHG emissions in the world.…

A: Water vapour, carbon dioxide, methane, nitrous oxide, ozone, and some man-made chemicals such as…

Q: 1. Consider ten countries that decide simultaneously and independently on the own contribution to…

A: We are going to find the equilibrium using single variable optimization techniques.

Q: Most governments are concerned about climate change. They have thus sought to negotiate an agreement…

A: Given information 3 sets of the country Rich country Poor country European Union Rich country…

Q: How will the imposition of the government implementing measures to combat climate change impact…

A: In a market, governement intervention refers to the situation when government tries to adjust market…

Q: The figure shows a national marketable permit system for carbon dioxide. If marginal abatement costs…

A: Permit Fees/Price implies the license, building review, designing, and arranging expenses paid via…

Q: Summarize how the first, second, and third waves of environmental policy in U.S. history differed…

A: During 17-18th centuries, the first phase of environmental regulation emerged. Environmental rules…

Q: Explain clearly what a Carbon Tax is. Then explain clearly what an Emissions Trading scheme is.

A: Carbon Tax A carbon tax is an environmental tax imposed by the government to ensure that a company…

Q: The revenues from an emissions-charge approach to controlling climate change would be unusually…

A: Revenue: The term revenue explains the money generated or earned by an individual. To make money,…

Q: Why do some economists believe a carbon tax is a better policy?

A: Most of the economists tend to assert that carbon taxes are in turn the most efficient as well as an…

Q: swer number 1 and number 2: -Puma's "Clever Little Bag" changes the idea of the shoebox by wrapping…

A: Sustainability in business refers to the situation when there is very less negative impact or…

Q: Describe one type of negative market externality with a forest as it relates to climate change.…

A: a) Environmental or forest related externalities, such as natural resources or public health, are…

Q: Which of these is a weakness of the Paris Accord O No binding emissions reduction targets were…

A: The Paris Climate Agreement fills a stunningly fundamental need: requesting that nations moderate…

Q: What advantages and disadvantages do you see in using acap-and-trade system to reduce greenhouse gas…

A: Emissions trading, also known as "cap and trade," is a low-cost method of lowering greenhouse gas…

Q: Worse than useless Europe's Emissions trading Scheme (ETS) has too many carbon emission permits…

A: A negative externality / external cost are a type of spillover which imposes a cost on the third…

Q: Why is emission mitigation is considered as a public good?

A: Emission mitigation is considered as a public good.

Q: Graphically analyze the effect that a revenue neutral carbon tax has on the consumption of carbon…

A: A carbon tax program that is viewed as unfair has a lower chance of passing and staying in place.…

Q: (a) Explain what is meant by command-and-control in terms of a demand side climate change policy.…

A: Traditional command-and-control regulatory programs may be replaced by market-based environmental…

Q: In a cap and trade system, when allowances are given away for free, regulated firms can enjoy rents…

A: Since the question you have posted consists of multiple parts, we will solve the first two parts for…

Q: Give 3 points on How can implementing return bottle policy in business help decrease waste in…

A: Clean environment is the right of each and every people but anthropogenic activities is violating it…

Q: A populous country's total greenhouse gas emissions may be relatively large even if its per capita…

A: Due to High population country the economic activities of economy is also high which lead to high…

Q: In figure 3, how much higher are the benefits of the Clean Air Provisions expected to be in 2020…

A: The economic theory that seeks to develop a link between economic development and quality of…

Q: 2 industries emit greenhouse gases (GHG): Energy (E) and Transportation (R). The marginal abatement…

A: A cap and trade system is used to limit pollution to a certain level. The level is pre decided and…

Q: What sector produces most of Australia’s GHG emissions? Clearly state the relevant references.

A: DISCLAIMER Since you have asked multiple questions, we will solve the first question for you as per…

Q: Would a cut in stamp duty and other purchase charges on the purchase of existing houses really boost…

A: Tax: Tax is a compulsory payment and the tax rate is decided by the government. Moreover, it is the…

Q: Discuss the need and benefits of imposing ecotax as a part of environmental government revenue…

A: Unites Arab Emirates is a country in the western part of Asia. It consists of 7 states and follows…

Q: You have just been elected governor of a medium-sized U.S. state. Citizens want you to take bold…

A: The total revenue is the revenue that is generated by selling given units of a commodity. The total…

Question

How do taxes, pollution charges, and cap-and-trade work to reduce emissions?

When a cap-and-trade is implemented _______.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

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.
In the Land of Purity, there is only one form of pollution, called gunk. Table 12.14 shows possible combinations of economic output and reduction of gunk, depending on what kinds of environmental regulations you choose. Sketch a graph of a production possibility frontier with environmental quality on the horizontal axis, measured by the percentage reduction of gunk, and with the quantity of economic output 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 K and L, can you say which one is better and why? In the choice between K. and N, can you say which one is better, and why? If you had to guess, which choice would you think is move likely to represent a command-and-control environmental policy and which choice is more likely to represent a market-oriented environmental policy, choice L or M? Why?
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.
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?
Table 12.12, shows the supply and demand conditions for a firm that will play trumpets on the streets when requested. QS1 is the quantity supplied without social costs. QS2 is the quantity supplied with social costs. What is the negative externality in this situation? Identify the equilibrium price and quantity when we account only for private costs, and then when we account for social costs. How does accounting for the externality affect the equilibrium price and quantity?
Classify the following pollution-control policies as command-and-control or market incentive based. A state emissions tax on the quantity of carbon emitted by each firm. The federal government requires domestic auto companies to improve car emissions by 2020. The EPA sets national standards for water quality. A city sells permits to films that allow them to emit a specified quantity of pollution. The federal government pays fishermen to preserve salmon.
Draw a standard supply and demand diagram for televisions, and indicate the equilibrium price and output. a. Assuming that the production of televisions generates external costs, illustrate the effect of the producers being forced to pay a tax equal to the external costs generated, and indicate the equilibrium output. b. If instead of generating external costs, television production generates external benefits, illustrate the effect of the producers being given a subsidy equal to the external benefits generated, and indicate the equilibrium output.
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.