Under what circumstances might an equal allocation of abatement responsibility across all firms in an industry do a pretty good job of achieving a desired overall level of abatement at the lowest overall cost, without the need to resort to market-based methods such as pollution taxes or cap-and-trade?
Q: Suppose the aggregate MAC function is 100 - 20W and aggregate MD = 5W for a polluting industry.…
A: MAC = 100 - 20W MD = 5W
Q: The initial allocation of tradable discharge permits O a determines whether or not an efficient…
A: Pollution permits give the firms legal right to pollute up to a certain level. These pollution…
Q: In the face of stable (or declining) enrollments and increasing costs, many colleges and…
A: The universities and colleges, both private and public are unbale to deal with their financial…
Q: The incorporation of environmental considerations into the design and development of products or…
A: THE SOLUTION ARE PROVIDED AS FOLLOWS
Q: Suppose that a firm's marginal abatement cost function with existing technologies is MAC = 16 - 2E.…
A: A abatement cost is an expense borne by firms when they are expected to eliminate as well as…
Q: Identify whether each of the following transactions involves spot exchange, contract, or vertical…
A: a. The legal obligation means any form of obligation from time to time which is formed and enforced…
Q: The process of collecting and assessing market based information on the external factors that impact…
A: Environmental scanning is an organizational method used to track their external and internal…
Q: The DeBeers Company of South Africa was able to block competition through economies of scale.…
A: Monopoly consists of a single seller who produces a unique good that has no close substitutes with…
Q: How is the Legal Charge and the violation of EPA Clean Water Act that relate to the deepwater…
A: EPA implemented the clean water act (CWA) that provides the structure for the regulation of…
Q: 1. JVT and MVC are major television networks competing for viewer ratings in the prime time slot…
A: The Nash equilibrium occurs where a player takes a best course of action provided the other player…
Q: Suppose that a firm's marginal abatement cost function with existing technologies is MAC = 16 - 2E.…
A: Thank you for submitting the questions.But we are authorized to solve one question at a time.Since…
Q: Under which of the following circumstances does the traditional command and control work better than…
A: The approach which in turn compels all the companies for the implementation of similar control…
Q: Private enterprises often oppose environmental regulation because it raises cost of operation,…
A: Given information Farm type is given Output of milk is given Daily demand for labor is given…
Q: Given the following problem statement: “Student performance on standardized grade-level proficiency…
A: Given problem statement is “Student performance on standardized grade-level proficiency exams…
Q: Describe the list of any known constraints imposed by the environment or by management of FreeRice…
A: FreeRice refers to the project started by the UN. Under this project, people need to play the game…
Q: All of the below statements caution us about the dangers of continued over-reliance upon fossil…
A: Fossil fuels are found in the crust of earth which are made from the decomposition of animals and…
Q: If the true marginal abatement cost is unknown by the regulator and if the marginal benefits of…
A: True Abatement cost is refer to the reducing environmental negatives including pollution and…
Q: Imagine a firm with a marginal abatement cost (MAC) function equal to: MAC = 27 - 3E. The…
A: Given, MAC = 27 - 3E Emission tax = $6
Q: Discuss the relevance of intermodal and intramodal competition in the railroad industry
A: A perfectly competitive market refers to the place where the price is decided through the passing…
Q: A toy factory Avengers can generate 50 (CO2) emissions without any regulation. The marginal control…
A: Given: Avengers can generate units = 50 Allowed to emit units = 20MC=10+Q Where MC is the marginal…
Q: Please explain..
A: With the adoption of new technology price will reduce because the productivity increases.
Q: Below presents the sustainable yield curve (measured by tons) for a fishery as a function of the…
A: Given, Effort = Number of boat fishing x Number of weeks per boat. a) In the first figure, the…
Q: The primary difficulty with command and control pollution regulation is that: a. It requires…
A: When talking about command and control pollution regulation, it is the government policy to…
Q: Marketers continually monitor the external environment for changes that may impact the strategic…
A: Marketing is the operation, collection of firms and processes to develop, interact, distribute and…
Q: Which is true of the CERCLA legal framework and corresponding economics? The plaintiff can claim…
A: The Comprehensive Environmental Response, Compensation, and Liability Act -- otherwise called CERCLA…
Q: The following are ethical concerns that management faces: Possible misuse of data gathered by a…
A: 1) when the misuse of data gathered happened, the growth of a company fell down because the other…
Q: The government has decided to impose a pollution tax on coal burning power plants in an attempt to…
A: Given values: Number of industrial carbon emitters = 20 Tax cost to each plant = $6 millionAnnual…
Q: The government is concerned with air pollution and decided to apply a uniform standard in the…
A: The difference in social cost between a deferential standard and a uniform standard set at Er is the…
Q: plant is releasing nitrogen oxides into the air, and these emissions are associated with health and…
A: Efficiency is attain at the output level where MSB equals MSC
Q: A type of external financing that does NOT require a corporation to return the amount borrowed at a…
A: External financing is a term used in capital structure theory to describe funds obtained from…
Q: For the Porter Hypothesis to be true, ____. a. a firm's total abatement costs must fall as a…
A: According to the porter hypothesis, to encourage innovation and induce efficiency to improve market…
Q: Discuss how public sector budgets reflect accountability during covid-19 ..in more words
A: Nowadays, pandemic covid-19 leads to a negative shock in the economy, which results in imbalance or…
Q: Which of the following best describes why the Hours of Service Regulations were put into place? O To…
A: The driver test is important to ensure the safety of peope with having the all relevant information.…
Q: There are two signatures. The profit function of firm j is: Zj = Zj + AEJ - B/2 * E2J Where all…
A: Profit refers to the subtraction of all the costs that have been incurred in a production process…
Q: A river is being used by both a chemical factory for waste disposal and a salmon fishery for fish…
A: We are going to solve this environmental economics question with the help of Marginal approach to…
Q: Which of the following policies aimed at reducing sulfur pollution would create an incentive for…
A: The policy should be open ended to make farmers think of innovative ways to cut down sulphur.
Q: Justify a positive discount rate in the n-period dynamic efficiency model.
A: Dynamic efficiency model is a static efficiency model scenario in which not only the magnitude but…
Q: Imagine a firm with a marginal abatement cost (MAC) function equal to: MAC = 100 - 10E. The…
A: MAC = 100 - 10E. The government introduces a per-unit tax on emissions equal to $20
Q: Suppose that two firms, X and Y, face the following marginal abatement costs (MACX and MACY) and…
A: Note:- Since we can only answer up to three subparts, we'll answer the first three. Please repost…
Q: In order to evaluate the relative advantages of taxes or emissions standards in the face of…
A: The following problem has been solved as follows:
Q: The Swedish Environmental Protection Agency investigates how emissions of an environmentally…
A: Marginal Damage is defined as the harm which is caused by an additional unit of pollution. Marginal…
Q: Each firm is now emitting 10 tons per week, so total emissions are 30 tons per week. Suppose we wish…
A:
Q: For each policy listed, identify whether it is a command-and-control policy (regulation), tradable…
A: Various policies like command and control, tradable permit system, corrective subsidy, corrective…
Q: Imagine a firm with a marginal abatement cost (MAC) function equal to: MAC = 45 - 5E. The…
A: Given, MAC = 45 – 5E Per unit tax = $10
Q: Explain rate of return regulation and price cap regulation. What are the major implications of these…
A: The regulators wish to regulate the natural monopoly to protect the interest of people so that the…
Q: One of the key reasons for explaining the case for efficient allocation of unregulated resources…
A: When talking about efficient allocation, it can be said that producers and consumers will interact…
Under what circumstances might an equal allocation of abatement responsibility across all firms in an industry do a pretty good job of achieving a desired overall level of abatement at the lowest overall cost, without the need to resort to market-based methods such as pollution taxes or cap-and-trade?
Step by step
Solved in 2 steps
- Suppose that under the United States-Canada Air Quality Agreement, both countries agree to a combined 30 percent SO2 abatement standard. Further assume that the following SO2 abatement cost functions have been estimated by each country: TACUS = 500 + 1.5(AUS)2 MACUS = 3 AUS TACCAN = 1000 + 3(ACAN)2 MACCAN = 6 ACAN A. If the countries implement a uniform abatement standard, find the resulting values of TAC and MAC for each nation. Based on these values, is there an economic incentive the two nations to participate in an emissions trading program? Explain. B. Assuming a trading program is enacted, find the cost savings associated with a cost-effective abatement solution? C. What must be the price of a tradeable permit to achieve the cost-effective abatement allocation?How does a cap-and-trade program deliver a minimum-overall-cost allocation of abatement responsibility? How is required abatement for each firm dictated within a cap-and-trade program? What information is conveyed by the equilibrium price of the permits being traded? How have recent cap-and-trade programs been modified to prevent market disruptions from resulting in either price spikes or extremely low prices?For each of the policy objectives listed, identify each as a product of either financial incentives governments provide or the system of intellectual property that governments uphold. Some objectives may not be supported by governments at all. Financial Incentives Intellectual Property Fund basis research Make research and development less risky for private firms Ensure that inventors are rewarded for making useful inventions Transfer a significant share of new inventions under government control Prevent inventors from creating redundant inventions Ensure that inventors are the only beneficiaries of their invention's benefits.
- Imagine a firm with a marginal abatement cost (MAC) function equal to: MAC = 45 - 5E. The government introduces a per-unit tax on emissions equal to $10. For a profit-maximizing firm, total compliance costs (total abatement costs plus tax payment) are $____.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?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 cost of reducing lead contamination of water for BigManufacture Inc. is shown in the table below. BigManufacture Inc currently releases lead in to the local waterways at a concentration of 5 parts per billion. The government regulations sets a limit to the lead pollution at 2 parts per billion accompanied by a $30,000 fine per year for each part per billion beyond the 2 part limit. What is BigManufacture Inc likely to do? Reduction of Lead Cost By 1 part per billion $20,000/year By 2 parts per billion $45,000/year By 3 parts per billion $80,000/year Group of answer choices Reduce lead pollution by 1 part per billion. Reduce lead pollution by 2 parts per billion. Reduce lead pollution by 0 part per billion. Reduce lead pollution by 3 parts per billion.The costs of producing steel have declined substantially from building a conventional hot-rolled steel mill down to the new minimill technology that requires only scrap metal, an electric furnace, and 300 workers rather than iron ore raw materials, enormous blast furnaces, rolling mills, reheating furnaces, and thousands of workers. What effect on the potential industry profitability would Porter’s Five Forces framework suggest this new technology had? Why?“Competition authorities in the world over have observably expanded their consideration of transactions fromapplying a purely competition-focused lens to one that incorporates the broader needs of society. ManyAfrican merger control regimes have developed a competition policy approach that balances traditionalcompetition law considerations with public interest concerns, especially in terms of market concentration,access to competitive markets for small and medium enterprises and employment considerations”.The economic problem being described above is ____ which can be solved through _____.A. Hyperinflation; fiscal policy measures.B. Unemployment; monetary policy adjustments.C. Market failure; enforcing antitrust laws and consumer protection regulations.D. Budget deficits; supply-side economic policies.
- Consider the carbon tax in British Columbia that was imposed in 2008. Suppose that the regulator evaluated aggregate emissions levels a couple of years into the program and aggregate emissions were higher than predicted. Describe a potential reason for this in terms of the regulator’s beliefs about the marginal abatement costs of the regulated firms.The DeBeers Company of South Africa was able to block competition through economies of scale. ownership of an essential input. government-imposed barriers. differentiating its product.What factors are critical to the success of Dar's efforts to revive ICRISAT?