The initial allocation of tradable discharge permits O a determines whether or not an efficient abatement cost allocation is achieved ' can have potentially large effects on the welfare of individual polluters is something that individual polluters care nothing about has neither efficiency nor equity implications

The initial allocation of tradable discharge permits O a determines whether or not an efficient abatement cost allocation is achieved ' can have potentially large effects on the welfare of individual polluters is something that individual polluters care nothing about has neither efficiency nor equity implications

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter14: Environmental Economics

Section: Chapter Questions

Problem 6SQP

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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. 1. Before the imposition of a corrective tax, the equilibrium price is: 2. Before the imposition of a corrective tax, the equilibrium quality is: 3. To correct the externality, the government should tax per tonne of steel produced equal to:
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?
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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. At this time, explain how the price of CO2 credits is determined and how much each power plant buys or sells.
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Why is the presentaion of corparate results increasingly accompanied by the presentation of a socially responsible bussines report. Provide 3 reasons