Economics For Today
10th Edition
ISBN: 9781337613040
Author: Tucker
Publisher: Cengage Learning
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Chapter 14.2, Problem 1.2GE
To determine
Advantages and disadvantages of tax system.
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Why do some economists believe a carbon tax is a better policy?
What advantages and disadvantages do you see in using acap-and-trade system to reduce greenhouse gas emissions?What pros and cons do you see in using carbon taxes toachieve this goal? What do you think of the idea of a revenueneutralcarbon tax? If you were a U.S. senator, what type ofpolicy would you support in order to address emissions in theUnited States, and why?
Graphically analyze the effect that a revenue neutral carbon tax has on the consumption of carbon intensive goods.
Chapter 14 Solutions
Economics For Today
Ch. 14.2 - Prob. 1.1GECh. 14.2 - Prob. 1.2GECh. 14.2 - Prob. 1.3GECh. 14.2 - Prob. 2.1GECh. 14.2 - Prob. 2.2GECh. 14.2 - Prob. 2.3GECh. 14.2 - Prob. 2.4GECh. 14 - Prob. 1SQPCh. 14 - Prob. 2SQPCh. 14 - Prob. 3SQP
Ch. 14 - Prob. 4SQPCh. 14 - Prob. 5SQPCh. 14 - Prob. 6SQPCh. 14 - Prob. 7SQPCh. 14 - Prob. 8SQPCh. 14 - Prob. 9SQPCh. 14 - Prob. 10SQPCh. 14 - Prob. 11SQPCh. 14 - Prob. 12SQPCh. 14 - Prob. 13SQPCh. 14 - Prob. 14SQPCh. 14 - Prob. 15SQPCh. 14 - Prob. 16SQPCh. 14 - Prob. 1SQCh. 14 - Prob. 2SQCh. 14 - From an economic viewpoint, the optimal amount of...Ch. 14 - Prob. 4SQCh. 14 - Prob. 5SQCh. 14 - Prob. 6SQCh. 14 - Prob. 7SQCh. 14 - Prob. 8SQCh. 14 - Prob. 9SQCh. 14 - Prob. 10SQCh. 14 - Prob. 11SQCh. 14 - Prob. 12SQCh. 14 - Prob. 13SQCh. 14 - Prob. 14SQCh. 14 - Prob. 15SQCh. 14 - Prob. 16SQCh. 14 - Prob. 17SQCh. 14 - Prob. 18SQCh. 14 - Prob. 19SQCh. 14 - Prob. 20SQ
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- Is zero pollution possible under a marketable permits system? Why or why not?arrow_forwardWill the demand for borrowing and investing in R&D be higher or lower if there are no external benefits?arrow_forwardWhat’s the economic goal of large taxes on energy companies whose production activities cause environmental damage?arrow_forward
- Most proponents of corporate environmental policy argue that the benefits of self-regulation far outweigh the impact of government regulatory frameworks in environmental management, particularly in the context of developing countries. Agree or disagree with this statement and justify your opinion in a four pointsarrow_forwardDistinguish between a carbon-tax and a cap-andtrade strategy for reducing carbon dioxide and other so-called greenhouse gases (that are believed by many scientists to be causing global warming). Which of the two strategies do you think would have the most political support in an election in your home state? Explain your thinking.arrow_forwardWhich of the following market failures does a carbon tax most explicitly try to address? Select one: a. monopolies b. lack of consumer information C. externalities d. corrupt politiciansarrow_forward
- Many economists favor a carbon tax as a way to discourage carbon emissions. Suppose such a tax were to be set at $20 per metric ton of carbon emissions (1 metric ton = 1,000 kilograms). Consider a 35% efficient coal-fired powerplant that produces 50MW of electricity. Given the carbon intensity of coal is 24gC/MJ, answer the following: a) What would the annual carbon tax be for this powerplant? Answer: $2.16 million/year b) A tree farm sequesters carbon at the rate of 5,000kg per year per acre over the 40-year life of the farm. What area of forest (in acres) would have to be planted to “offset” the powerplant’s emissions over the next 40 years (roughly the lifetime of the powerplant)? Answer: 21,600 acres c) How much could the powerplant operators pay for the forestry project (in $/acre-year) and still have it be cheaper than paying the $20 per metric ton carbon tax? Answer: $100/acre-yeararrow_forwardIf there was a policy that required all refrigerators manufacturers to produce energy efficient refrigerators that run on 500W or less, what kind of regulation would this be? a. carbon tax b. conventional c. market based d. cap and tradearrow_forwardConsider two competitive firms with the following marginal abatement cost functions: MAC1 = 100 – 2e1 MAC2 = 50 – 0.5e2 1. Without regulation, what is the total level of emissions Eu? 2. If a regulator wants to reduce aggregate emissions to 50 units cost-effectively, how much should each firm emit? Firm 1’s emissions level ________________ Firm 2’s emissions level ________________ 3. If a regulator wants to reduce aggregate emissions to 50 units cost-effectively, what uniform emissions tax should the regulator impose?arrow_forward
- What economic impacts and benefits have been observed as a result of the implementation of the Clean Air Act on industries and public welfare?arrow_forwardThe revenues from an emissions-charge approach to controlling climate change would be unusually large in comparison to other pollutants. What circumstances would lead to high revenues?arrow_forwardHow can UNIDO address the negative environmental impact of the semiconductor industry while preventing production prices from increasing?arrow_forward
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