4. Understanding different policy options to correct for negative externalitiesCarbon dioxide emissions have been linked to worsening climate conditions. The following tablelists some possible public policies aimed at reducing the amount of carbon dioxide in the air.For each policy listed, identify whether it is a command-and-control policy (regulation), tradablepermit system, corrective subsidy, or corrective tax.Command-and-TradableControlPermitCorrectiveCorrectivePublic PolicyPolicySystemSubsidyТаxThe government agrees to reimburse allfactories that purchase new, emissions-reducing technology in order to providecleaner air.The government limits total carbon-dioxideemissions by all factories to 160,000 tonsper month. Each individual factory is giventhe right to emit 130 tons of carbondioxide, and factories may buy and sellthese rights in a marketplace.The government charges factories $340for every ton of carbon dioxide they emit.The government orders every factory toadopt a new technology, which reducescarbon-dioxide emissions into theatmosphere.

Public policies refer to a course of action taken by the government or other organizations to solve…

Answered: Carbon dioxide emissions have been…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Carbon dioxide emissions have been linked to worsening climate conditions. The following table lists some possible public policies aimed at reducing the amount of carbon dioxide in the air. For each policy listed, identify whether it is a command-and-control policy (regulation), tradable permit system, corrective subsidy, or corrective tax. Public Policy Command-and-Control Policy Tradable Permit System Corrective Subsidy Corrective Tax The government limits total carbon-dioxide emissions by all factories to 130,000 tons per decade. Each individual factory is given the right to emit 170 tons of carbon dioxide, and factories may buy and sell these rights in a marketplace. Trees take carbon dioxide out of the air and convert it to oxygen, so the government funds a tree-planting initiative by offering $480 to any citizen who plants a tree. The government orders every factory to adopt a new technology, which reduces…
No Plagirism Please! Price controls on rents are frequently implemented by governments in an effort to protect renters from high housing prices. Differentiate the type of price control used from other potential price controls, and then formulate reasons as to why governments should be careful when implementing these types of controls
Provide a graphical representation of a negative supply-side externality that identifies the market failurein terms of both price and quantity.
Discuss real world examples of Consumer and Producer Surplus ?
The market for smart phone applications is characterized by the following demand and supply curves. QD = D(P) = 15 - 3P QS = S(P) = 5 + 10P (a) Calculate the equilibrium price and quantity for this market. (b) The government is considering introducing a per unit subsidy of t on each electric car that is purchased. Suppose that the statutory incidence of this subsidy will be on buyers. Using the equilibrium conditions, D(Pn - t) = S(Pn) = Q* (i.e. that demand equals supply in equilibrium), derive an equation in terms of es and ed that describes what fraction of the subsidy is borne by buyers/consumers. (c) Suppose that the unit tax is set at t = 0.1 per unit. What is the excess burden of this tax per dollar of revenue raised? (d) Suppose that we incorrectly assumed that supply was perfectly elastic and there was no impact of the tax on the equilibrium price received by sellers. Would EB/Tax Revenue be higher or lower than what you calculated in part (c)? In 4 sentences, explain your…
12
When considering the possibility of legalizing the recreational use of cannabis, had the state governments of California and Maine already anticipated the price decline for cannabis after legalization? If yes, should the state governments of California and Maine choose the tax-per-price scheme or the tax-per-weight scheme?
Figure HW12-1 represents the market demand and supply of paper that is produced by a paper mill. The raw chemical waste discharged into a nearby river by the paper mill causes health issues for local residents and negatively affects the community's ecological characteristics. pure HW 12 Pre $11 $9 $$ $5 $2 $1 $1 0 1 2 3 5 6 8 9 10 11 12 13 14 Quantity of Paper (in millions) Refer to Figure HW12-1. If the government regulates the paper mill to reduce its chemical waste, how many units of paper would be produced? What is the market equilibrium price? 5 million, $5. 7 million, $3.
Your student group is setting up an internship fair. You invite companies looking for interns and students looking for internships and offer them a place to connect. The UofT wants to encourage this event and offers a per-internship of $5000. Whom do you recommend they give the $5000 to?--the student who gets the internship, the company that hires the student or split the money between them equally? What would be the effect of a $5000 subsidy on the number of internships? Why?

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