Suppose we are interested in reducing the carbon footprint associated with heating/cooling buildings oncampus. The functions below describe marginal costs ofCO2abatement (expressed as a function of pollution)for two buildings on the Hendrix College campus. These are hypothetical but are influenced by buildingcharacteristics like age, size, and types of usage. M CMills= 100−10xM M CSLT C= 75−
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Suppose we are interested in reducing the carbon footprint associated with heating/cooling buildings oncampus. The functions below describe marginal costs ofCO2abatement (expressed as a function of pollution)for two buildings on the Hendrix College campus. These are hypothetical but are influenced by buildingcharacteristics like age, size, and types of usage.
M CMills= 100−10xM
M CSLT C= 75−2.5xS
If the abatement were pursued with an on-campus carbon tax of$30, would there be the same level ofabatement? Show your work and/or explain.
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- Suppose we are interested in reducing the carbon footprint associated with heating/cooling buildings oncampus. The functions below describe marginal costs ofCO2abatement (expressed as a function of pollution)for two buildings on the Hendrix College campus. These are hypothetical but are influenced by buildingcharacteristics like age, size, and types of usage. (This information is used for questions 1-4) MCMills = 100−10xM MCSLTC = 75−2.5xS 1. If the College pursued its abatement target by directing each building manager to cut emissions in halffor their respective building, what is the total cost of abatement? 2. If the abatement were pursued with an on-campus carbon tax of$30, would there be the same level ofabatement? Show your work and/or explain. 3. If the goal of the college is to meet the abatement target from question 1, what is the appropriate taxrate? 4. If the appropriate tax rate is used (answer from Q3), how much money can be saved compared to thecommand & control…A local college is deciding whether to conduct a campus beautification initiative that would involve various projects, such as planting trees and remodeling buildings, to make the campus more aesthetically pleasing. For the students of the college, the visual appearance of the campus isnonrival andnonexcludable . Thus, the visual appearance would be classified as a public good. Suppose the college administrators estimate that the beautification initiative will cost $61,110. To decide whether the initiative should be undertaken, administrators conduct a survey of the college's 2,240 students, asking each of them their willingness to pay for the beautification project. The average willingness to pay, as revealed by the survey, is $20. The benefit of the beautification initiative, as suggested by the survey, is . Because the estimated benefit is than the cost, the college administrators undertake the beautification initiative. The calculation of the benefit of…Consider two sources of a non-uniformly mixed pollutant: one source with a high and the other one with low transfer coefficient. Which statement(s) is/are true? Mark all that applies. Group of answer choices For the source with the higher transfer coefficient. a higher ambient charge per unit of emissions is justified. For the source with the lower transfer coefficient a higher ambient charge per unit of emissions is justified. For the source with the higher emissions level a higher ambient charge per unit of emissions is justified. The source with the higher transfer coefficient is required to purchase more ambient allowance when it emits a unit of emission. The source with the lower transfer coefficient is required to purchase more ambient allowance when it emits a unit of emission. The source with the higher emission level is required to purchase more ambient allowance when it emits a unit of emission than the source with the lower overall emissions level
- Respond to the question with a concise and accurate answer, along with a clear explanation and step-by-step solution, or risk receiving a downvote. n the table below are the marginal abatement costs of two firms. Note that an entry in the table indicates the cost of reducing emissions by one unit from the previous level. For example, $104 is the additional abatement cost for Firm 1 to reduce its emissions from 3 tons to 2 tons, and $40 is the cost for Firm 2 to reduce its emissions from 7 tons to 6 tons. 1.In an unregulated environment each firm produces 10 tons of emissions (20 tons total). Using the table above, what emissions levels (i.e., emissions standards) would you assign if you wanted to limit aggregate emissions to 7 tons in a cost-effective manner? Firm 1’s emissions level ________________ Firm 2’s emissions level ________________ 2.Given the emissions levels from Question 1, calculate the total abatement cost for each firm? Firm 1’s total abatement cost ________________…The marginal damage cost equation for carbon monoxide (CO) in urban areas is: MDCU = 36E; The marginal damage cost equation for CO in rural areas is: MDCR = 6E.The marginal abatement cost equation for CO is: MAC = 400 - 4E What are the socially efficient individual standards for carbon monoxide? What is the total abatement cost in each area under this scheme? What is the total compliance cost under this scheme?Suppose the aggregate MAC function is 100 - 20W and aggregate MD = 5W for a polluting industry. 1. Here the slopes of MAC and MD are equal in absolute value. Suppose instead that the slope of the MD function is greater than the slope of the MAC function. What would then be the preferred policy if there was asymmetric information about MAC? A. Emissions tax B. Emissions standard C. No regulation D. None of the above 2. Suppose an emissions standard is being considered to achieve the socially optimal emissions level. What would be the total costs that the polluting industry avoids if the regulator decided not to regulate the firm and leave the market as is? A. 0 B. 150 C. 50 D. 10 3. What are total damages that would be avoided if in fact the regulator used an emissions standard to achieve the socially optimal level of emissions? A. 62.5 B. 40 C. 12.5 D. None of the above 4. What are net benefits at the optimal level of emissions using the "abatement cost perspective'' ?…
- . Appalachian Coal Mining believes that it can increase labor productivity and, therefore, net revenue by reducing air pollution in its mines. It estimates that the marginal cost function for reducing pollution by installing additional capital equipment is MC=40P Where P represents a reduction of one unit of pollution in the mines. It also feels that for every unit of pollution reduction the marginal increase in revenue (MR) is MR=1000-10P How much pollution reduction should Appalachian Coal Mining undertake?Suppose that a firm's marginal abatement cost function with existing technologies is MAC = 8 - E. If the firm adopts new pollution abatement technologies, then its marginal abatement cost function will become MAC = 4 - 0.5E. Moreover, assume that the adoption costs for the new technologies are $3. If the government raises the tax on emissions from $1 to $3, then the firm's total costs increase by $____. (Hint: total costs are different from total compliance costs. Total compliance costs are the sum of TAC and tax payment, while total costs are the sum of total compliance costs and adoption costs (remember that adoption costs are only incurred if the firm actually decides to adopt the new technology).) Please round your final answer to two decimal places if necessary. THE ANSWER IS NOT 9Appalachian Coal Mining believes that it can increase labor productivity and, therefore, net revenue by reducing air pollution in its mines. It estimates that the marginal cost function for reducing pollution by installing additional capital equipment is MC = 40P where P represents a reduction of one unit of pollution in the mines. It also feels that for every unit of pollution reduction, the marginal increase in revenue (MR) is MR = 1,000 - 10P How much pollution reduction should Appalachian Coal Mining undertake?
- For a marginal damage cost function equal to: MD = 0.8E, the marginal damage cost of the 50th unit of emissions is _______.The marginal benefit of being able to emit a ton of sulfur dioxide emissions for two firms are given by:MBX = 1000 – ( Ex / 2 )MBY = 600 – ( Ey / 3 ) Note that these marginal benefit figures can be interpreted as marginal cost of abating emission down to levels Ex and Ey.Government regulators want to reduce total sulfur dioxide emissions to a total of 1800 tons.a) If the government imposes the same standard of 900 tons maximum emissions on both firms what would be the total cost of abatement (calculated as the aggregated marginal benefits forgone)? b) If the government distributed 900 tradable pollution permits (one ton each) to each firm what would be the final allocation of these permits after the firms trade them?c) What would be the total cost of abatement in this latter case?The Swedish Environmental Protection Agency investigates how emissions of an environmentally hazardous substance from an industrial sector should be regulated, either through a tax on the emissions or through a quantitative regulation (limit value). As this is a new substance (new substance), knowledge of the level of environmental damage and the costs of reducing emissions is uncertain. In more technical terms: the regulatory authorities do not have complete information on the positions on either the dD / dM curve (marginal damages) or the MAC curve (marginal abatement costs). a) Explain and show graphically whether - and if so how - the uncertainty about the position of the MAC curve affects the choice between regulating emissions with a tax or limit value from a socio-economic efficiency perspective. b) Explain and show graphically whether - and if so how - the uncertainty about the position of the dD / dM curve affects the choice between regulating emissions with a tax or limit…