In a hypothetical country, the government introduces a new policy aimed at combating global warming. As part of this policy, they impose a carbon tax of $20 per ton of CO2 emissions on industries. Prior to the tax, the country's industrial sector emits 800,000 tons of CO2 annually. After the implementation of the tax, the industrial sector reduces its emissions to 600,000 tons of CO2 annually.Calculate the following:The reduction in CO2 emissions as a result of the carbon tax.The total revenue collected by the government from the carbon tax.If the government uses all the revenue collected from the carbon tax to subsidize renewable energy projects, and each project receives $25,000, how many projects can be funded with the total revenue?(Note: Assume no other external factors influencing CO2 emissions, and all calculations are based on the data provided.)

A carbon tax is an economic instrument introduced by governments to curb carbon dioxide emissions by…

Answered: In a hypothetical country, the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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In a hypothetical country, the government introduces a new policy aimed at combating global warming. As part of this policy, they impose a carbon tax of $20 per ton of CO2 emissions on industries. Prior to the tax, the country's industrial sector emits 800,000 tons of CO2 annually. After the implementation of the tax, the industrial sector reduces its emissions to 600,000 tons of CO2 annually.

Calculate the following:

The reduction in CO2 emissions as a result of the carbon tax.
The total revenue collected by the government from the carbon tax.
If the government uses all the revenue collected from the carbon tax to subsidize renewable energy projects, and each project receives $25,000, how many projects can be funded with the total revenue?

(Note: Assume no other external factors influencing CO2 emissions, and all calculations are based on the data provided.)

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