If it costs Con Ed approximately $20 per additional ton of air pollution it reduces, but it costs PG&E only $10 per additional ton of air pollution it reduces, a marketable pollution permit trading for $14 per ton could Multiple Choice

If it costs Con Ed approximately $20 per additional ton of air pollution it reduces, but it costs PG&E only $10 per additional ton of air pollution it reduces, a marketable pollution permit trading for $14 per ton could Multiple Choice

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter12: Environmental Protection And Negative Externalities

Section: Chapter Questions

Problem 9SCQ: The rows in Table 12.7 show three market-oriented tools for reducing pollution. The columns of the...

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Question

If it costs Con Ed approximately $20 per additional ton of air pollution it reduces, but it costs PG&E only $10 per additional ton of air pollution it reduces, a
marketable pollution permit trading for $14 per ton could
Multiple Choice
save PG&E $6 per ton and earn Con Ed $4 per ton.
earn PG&E $6 per ton and save Con Ed $4 per ton.
earn PG&E $4 per ton and save Con Ed $6 per ton.
save PG&E $4 per ton and earn Con Ed $6 per ton.

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