The figure above shows a national marketable permit system for carbon dioxide.Which of the following areas represents permit revenue, the government's incentiveto monitor the permit program?PermitPrice($/ton)D2P2 = 600D1%3DPT = 300S.%3DAP, = 1501%3DCDQuantity of Permits(% of uncontrolled emissions)5075100QTQ2O A. The sum of areas A, B, C, and D.O B. The sum of areas B and D.OC. Area E.OD. The sum of areas A and B.O E. The sum of areas A, B, and E.2.B

The permit price is determined by the supply of permits and demand for permits. The equilibrium…

Answered: The figure above shows a national…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose we are interested in reducing the carbon footprint associated with heating/cooling buildings oncampus. The functions below describe marginal costs ofCO2abatement (expressed as a function of pollution)for two buildings on the Hendrix College campus. These are hypothetical but are influenced by buildingcharacteristics like age, size, and types of usage. (This information is used for questions 1-4) MCMills = 100−10xM MCSLTC = 75−2.5xS 1. If the College pursued its abatement target by directing each building manager to cut emissions in halffor their respective building, what is the total cost of abatement? 2. If the abatement were pursued with an on-campus carbon tax of$30, would there be the same level ofabatement? Show your work and/or explain. 3. If the goal of the college is to meet the abatement target from question 1, what is the appropriate taxrate? 4. If the appropriate tax rate is used (answer from Q3), how much money can be saved compared to thecommand & control…
1. Suppose that a polluting activity has marginal damage and marginal abatement costs given by MD=2E and MAC = 210 - 3E, respectively. Suppose that the polluter(s) are held liable for damages. (a) What level of emissions will be chosen by polluters. (b) Compute the amount of damages (compensation) that will be paid by polluters and the total of all costs paid by polluters. (c) Compute the social gains from instituting legal liability, relative to the no-abatement outcome.
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.
Suppose a lake enjoyed by three homeowners is cleaned up to the socially efficient level of pollution by splitting the cost of cleanup equally among the three homeowners. 1. Describe a situation where at least one homeowner would be made worse off by this cleanup policy. 2. In the situation you described above, is there an alternative way to allocate costs that would avoid this problem? 3. What are the barriers, if any, to achieving this alternative? (250 words or fewer.)
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
Industrial pollution is often cited as an example of a negative externality, but what about smoking? Most of you grew up in an era when smoking was much less socially acceptable than when your parents and grandparents were young. Both students and instructors used to smoke in the classroom and it was allowed was allowed in many college classrooms as late as the 1970s. Although few, if any, colleges allow smoking in classroom buildings now, many bars and restaurants have smoking sections. (a) would you be willing to pay smokers to not smoke while they are in the same restaurant or (b) would you choose to sit in a restaurant’s smoking section to avoid a longer wait for a table in a nonsmoking section. Discuss the cost of the externality to you and others.
$ MAC 69 0 K A. The total benefit of that decision is represented by area(s) B. The total cost of that decision is represented by area(s) M Suppose that emissions were to decrease from the unregulated level to the optimal level. C. The net benefit of that decision is represented by area(s) MD ◆ e ◆
Confused and uncertain how to solve properly Blank one, two and three: a. Buy one permit b. Buy two permits c. Don’t buy/sell d. Sell one permit e. Sell two permits Blank four: Less or more
Assume the following: A community, Manatee, has a small groundwater aquifer, with water to allocate over 2 years. Assume that this resource is non-renewable. Each year is labeled Period 1 and 2, respectively. Use 2 decimal places throughout your work. Water reserves = 12,000 litres, to be allocated over Period 1 & Period 2 Interest rates are at 8% Marginal Benefits: MB1 = 5000 - ½Q1 , MB2 = 5000 - ½Q2 Marginal Costs of extraction: MC1 = 120 , MC2 = 120 (a) What is the optimal allocation of water, under a static efficiency allocation, for both periods? (b) What should the dynamic optimal allocations be (quantities and prices) in Period 1 and Period 2?
The good expert Hand written solution is not allowed
13. 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? What would be the total cost of abatement in this latter case?

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