2. Country X has carbon emission of 5000 units per year. The country is involved with Paris Agreement and will strive to reduce the emission of pollutants by 80%. The country has decided that the appropriate strategy is a permit system. (These problems are all sequential) a. How many permits should the government provide? 1000 permits b. Assume that the marginal benefit of abatement and the marginal cost is as followed: MBAbatement=500-0.5QAbatement MCAbatement=2QAbatement Find the total cost of abatement that would be done due to the permit system! Cc How many permits should be provided by the government to be efficient?

2. Country X has carbon emission of 5000 units per year. The country is involved with Paris Agreement and will strive to reduce the emission of pollutants by 80%. The country has decided that the appropriate strategy is a permit system. (These problems are all sequential) a. How many permits should the government provide? 1000 permits b. Assume that the marginal benefit of abatement and the marginal cost is as followed: MBAbatement=500-0.5QAbatement MCAbatement=2QAbatement Find the total cost of abatement that would be done due to the permit system! Cc How many permits should be provided by the government to be efficient?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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when left the treat environment as if it has no value the polluters in region release collective 500 tons of pollutant per year. The damages from this pollutant are MD=10e while aggregate abatement cost is MAC=10+5a. Calculate; A)efficient aggregate levels of abatement and emissions B)use calculations to show that a one ton increase or decrease in emissions would not be efficient
Only typed answer You are an industry analyst that specializes in an industry where the market inverse demand is P = 100 - 3Q. The external marginal cost of producing the product is MCExternal = 6Q, and the internal cost is MCInternal = 14Q. Instruction: Round your answers to the nearest two decimal places. a. What is the socially efficient level of output? units b. Given these costs and market demand, how much output would a competitive industry produce? units c. Given these costs and market demand, how much output would a monopolist produce? units d. Which of the following are actions the government could take to induce firms in this industry to produce the socially efficient level of output. Instructions: You may select more than one answer. Click the box with a check mark for the correct answers and click twice to empty the box for the wrong answers. You must click to select or deselect each option in order to receive full credit. Pollution taxes…
500 450 The graph on the right may help in answering question 25 400 350 300 250 200 150 100 50 O 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 Quantity Demand MC Exter nality MC private MC Social A competitive tire manufacturing industry spews emissions into the air at47 per tire a marginal cost of 1.5-q, where q is the quantity of tires produced per month (in thousands). The industry marginal cost, excluding the cost of emissions (private marginal cost), is 4 + 4•q, expressed in $ per tire. The inverse demand curve for tires is p = 480 - 3-q, also expressed in $ per tire. In order to achieve the socially efficient level of tire production, which takes into account the optimal level of air pollution, the government levies a tax on the industry. What is the efficient pollution tax? $84 per tire $101 per tire $152 per tire Price
Please solve them in details and use the provided answers in green to double check your answers.
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