The figure below shows the market for a good. An improvement in EQ would shift the supply curve for the good from S1 to S2. What would be the total willingness to pay of market participants for this reduction in pollution? Price 80.00 $1 * 18.0 62.00 52.00 26.00 10.00 a) 570 b) 494 Oc) 264 Od) 230 28.0 $2 Quantity

The figure below shows the market for a good. An improvement in EQ would shift the supply curve for the good from S1 to S2. What would be the total willingness to pay of market participants for this reduction in pollution? Price 80.00 $1 * 18.0 62.00 52.00 26.00 10.00 a) 570 b) 494 Oc) 264 Od) 230 28.0 $2 Quantity

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter14: Environmental Economics

Section: Chapter Questions

Problem 9SQP

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What is a marketable permit and what incentive does it provide for a firm to account for external costs?
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Helllo can you please help me with this question thank you, There are two polluters in the region, Firm 1 is currently emitting 100 units of pollution and Firm 2 is currently emitting 120 units of pollution for a total of 220 units of pollution in the region. The government wants to reduce total pollution by 80 units. For simplicity, ignore enforcement costs. The total and marginal abatement costs of each polluter are as follows: TAC1 = A1+1.5A12 TAC2 = 3A2 + A22 MAC1 = 1 + 3A1 MAC2 = 3+2A2 Suppose each firm is issued the same (equal) number of pollution permits designed in total to achieve the 80-unit reduction. What is the equilibrium quantity of abatement by firm 2? Question 10 options: 32.4 40 120 47.6
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) Suppose that the emission trading system is introduced and the right to emit 7 tons is given to power plant A and the right to emit 5 tons is given to power plant B. In order for emission permits to be traded, the price of one unit of emission permits must be at least a certain amount (minimum price) and conversely, how much must be less than a maximum (maximum price), that is, explain the fluctuation range of the emission permit price.
20.21.23. Please answer by a.b.c.d as I didnt put them thank you. The Tragedy of Municipalities describes the arrival of new herds of sheep until the complete disappearance of the grass of the near-municipalites. A solution to this dilemma would be to • Limit the size of the herds. Sell a limited number of permits to herd owners. Increase the area of communal meadows. ( Ensure that externalities are internalised by subsidising the Production of sheep's wool __ When the externalities of a market are remedied, All citizens of a community are in advantage (all are winners). The social surplus is maximised. • All these statements are true. The solution is fair — The provision of a public good by the government will be efficient (optimal) if (AmS is lower than CmS. O AmS (the social marginal advantage) = CmS (the social marginal cost). O the marginal social benefit is greater than the social marginal cost (MS). The private marginal advantage is greater than the social…
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 9
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Imagine a firm's marginal abatement cost function with existing technologies is: MAC = 200 - 10E. If the firm adopts new pollution abatement technologies, its marginal abatement cost function will be: MAC = 100 - SE. With a tax on emissions of $20, the benefits of adopting the new technologies equal: Select one: a. $30. b. $20. c. $25. d. $50.