Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E): MAC 1 9 3E_1 MAC 2=16-2E_2, and assume marginal external damages (MED) from the aggregate emissions of both firms (E_Agg = E_1 + E_2) is: MED = E Agg In the absence of government intervention, total external damages (TED) are Answer:

Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E): MAC 1 12 - 2E_1 MAC 28 E_2, - and assume marginal external damages (MED) from the aggregate emissions of both firms (E _Agg = E_1 + E_2) is: MED = .5E_Agg. To achieve the socially efficient level of aggregate emissions (E*_Agg), the government institutes a cap and trade policy and sets the permit cap equal to

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Consider two firms with the following marginal abatement costs (MAC) as a function of emissions B: MAC 1-22-2E 1 MAC 2-9-E 2 and assume marginal external damages (MED) from aggregate emissions from the two firms (E_Agg=E_1+E_2) is: MED = E_Agg. Total external damages (TED) at the socially efficient level of aggregate emissions (E_Agg) is Answer:

Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E): MAC 1 10 - .5E_1 = MAC 2 20 E_2, = - and assume marginal external damages (MED) from the aggregate emissions of both firms (E_Agg = E_1 + E_2) is: MED = .5E_Agg. To achieve the socially efficient level of aggregate emissions (E*_Agg), the government institutes a cap and trade policy and sets the permit cap equal to F

Consider the following graph that shows the marginal abatement cost (MAC) curve for a coal power plan for reducing local air pollution and the marginal damage (MD) curve for those living around the coal power plant. MD (E) MAC (E b. Emissions E-0 E EL E-Max AMax Or Abatement E A-0 What are the total abatement costs at E' (enter your answer with the letters and "+" signs as "a+b+c+d+e+f", without the quotation marks. What are the total abatement costs at E-0 (enter your answer with the letters and "+" signs as as "a+b+c+d+c+f", without the quotation marks. If the property rights were with the coal power plant how much Emissions would we see? (enter one of the following, "E-0", "E", "E1", "E-Max") If the property rights were with the people how much Emissions would we see? (enter one of the following. "E-0", "E", "E1 "E-Max") What is the socially optimal level of emissions (choose from one of the following and enter as written without the quotation marks, "E-0". "E"E1 "E-Max").

Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E): MAC_1 = 12-.5E_1 MAC_2 = 12-E_2, and assume marginal external damages (MED) from the aggregate emissions of both firms (E_Agg = E_1 + E_2) is: MED = (1/3)E_Agg. To achieve the socially efficient level of aggregate emissions (E*_Agg), the government institutes a per unit tax on emissions. The per- unit tax on emissions is $ Answer:

Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E): MAC_1 = 12 - .5E_1 MAC_2 = 12 - E_2, and assume marginal external damages (MED) from the aggregate emissions of both firms (E_Agg = E_1 + E_2) is: MED = (1/3)E_Agg. To achieve the socially efficient level of aggregate emissions (E*_Agg), the government institutes a per unit tax on emissions.  The per-unit tax on emissions is $____.

Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E): MAC_1 = 18-2E_1 MAC 2 = 12-E2, and assume marginal external damages (MED) from the aggregate emissions of both firms (E Agg E_1+E_2) is: MED = 5E Agg. To achieve the socially efficient level of aggregate emissions (E Agg), the government institutes a perunit subsidy to abatement. The total (or combined) subsidy payment to the two firms is $_