Q: Would environmentalists favor command-and-control policies as a way to reduce pollution? Why or why…
A: The command-and-control regulation establishes particular pollution emission limitations and/or…
Q: If society wishes to reduce pollution, why is it more efficient to tax the pollution rather than set…
A: Note- Since you have posted multiple independent questions in the same request, we will solve the…
Q: What is an externality? How do they affect market efficiency? If an externality is present,…
A: Externality is an economic concept that describes the costs or benefits that a third party bears…
Q: Consider a small town with a factory that produces cell phones. The factory's production causes air…
A: Negative externalities arise when the use or production of a product or service causes harm to a…
Q: What is the main rationale behind marketable pollution permits?
A: Emissions trading or cap and trade is a market-based approach that is used by government to control…
Q: The graph illustrates the unregulated market for uranium. When the mines produce uranium, they also…
A: Marginal Social Costs:-The overall price society pays for the creation of an additional unit or for…
Q: Pollution is a negative externality. Why is it that the social optimum in a market that generates…
A: Externality: - it is a cost or benefit generated for the third party by the actions of other people.
Q: Imagine the government of California has proposed a new tax on vehicles based on the amount of…
A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…
Q: How would an economist answer the question: "What is the socially best amount of pollution control?"…
A: The socially best amount of pollution control will be at the point or amount where the net benefits…
Q: Roses confer many external benefits on society: the beauty they add to a room or garden, the…
A:
Q: What assumptions do economists make? Why does each assumption matter in environmental economics?
A: Economics: It is related to the production, distribution, and consumption of goods and services.
Q: In what ways is pollution still a problem?
A: Environmental economics studies the distribution of the world's natural resources for efficient use…
Q: Assume the government places an optimal Pigouvian tax on electricity used at night to reduce light…
A: Answer
Q: Suppose that flu shots create a positive externality equal to $12 per shot. What is the relationship…
A: Positive externality refers to the benefit to society due to the production of goods and services.…
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A: Suppose the government has determined that the socially optimal quantity of chemical pollution is…
Q: Some economists argue that early child care generates an external benefit to society. Consider the…
A: Socially optimal output can be achieved when MSB = MSC
Q: Is environmental pollution a failure of the free market system?
A: Yes, environmental pollution is an outcome of free market system failure.
Q: Cars impose many external costs on society: carbon dioxide emissions that contribute to air…
A: Negative externality refers to adverse effect from production or consumption of a good imposed on…
Q: How does the law address either the "Tragedy of the Commons", the free-rider problem, or pollution…
A: The tragedy of the commons is a financial aspects problem where each individual has a motivation to…
Q: I know that optimal pollution in b is when marginal cost equals marginal benefit....not sure how to…
A: a) The optimal degree of water cleanliness is the point where the marginal benefit is equal to the…
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A: An equilibrium being socially efficient occurs at a higher price (P*) and a lower output (Q*) as…
Q: True or false and use a graph to explain: the socially optimal level of pollution is zero.
A: By matching the marginal cost of new pollution with the marginal benefit, the amount of pollution…
Q: Why has supply and demand failed to prevent pollution
A: Supply: It refers to the goods and services available in the market for the people's purchase. The…
Q: It’s common to think that reducing pollution is necessarily costly because to reduce pollution we…
A: This can be defined as the revenue for the government collected from the income or profit that an…
Q: Use a graph to illustrate the quantity of pollution that would be emitted (a) after a corrective tax…
A: Suppose Demand for pollution is P=30-Q, If a tax of $10 per unit is set, the optimal amount of…
Q: Which of the following best explains why economists believe that there is an optimal amount of…
A: From a monetary perspective the socially ideal degree of contamination happens when the minimal…
Q: When studying pollution and the environment, economists O A) emphasize costs and benefits. B)…
A: Pollution is treated as a negative externality in economics. Negative externality means that it is a…
Q: Can you explain why the following statement is false? The efficient level of a pollution-emitting…
A: The Marginal External Cost (MEC) of pollution is the extra expense incurred by society or third…
Q: t are the costs of pollution according to the Lancet Commission on pollution and health? Why are…
A: Lancet commission has done research on different kinds of land, air and water pollution and…
Q: Parks confer many external benefits on society: open space, trees that reduce pollution, and so on.…
A: Externalities refer to the effects of an economic activity that spill over onto third parties who…
Q: The following graph represents the market for high-emissions cars. Answer this question assuming…
A: Efficient outcome occurs at intersection of Social value and supply curves. The resulting deadweight…
Q: What should the government set their corrective tax to if they want to eliminate 7 units of…
A: Each firm will bear the cost of eliminating certain units of pollution if the corrective tax rate is…
Q: The primary source of air pollution in the small town of Smokey, Nevada is a nearby steel mill. The…
A: An externality refers to a link among individuals that lie outside the price system of the economy.…
Q: Suppose the equation for the demand curve in a market is P=100-1.5QD, where Qp is the quantity…
A: Given Demand equation :- P = 100 - 1.5QD Supply equation :- P = 0.5QS External cost = $8
Q: The Coase Theorem says that if people negotiate the right perform activities that cause…
A: An economic concept known as "externality" describes the expenses paid for or advantages received by…
Is zero pollution an optimal goal?
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- What happens in the market for a good that pollutes the air when it is manufactured if government decides to tax its production? Will this reduce the amount of air pollution?Why do economists prefer corrective taxes and tradeable permits over command and control policies as a way to protect the environment from pollution? ExplainNow suppose the U.S. government does not know the demand curve for pollution and, therefore, cannot determine the optimal tax to achieve the desired level of pollution. Instead, it auctions off tradable pollution permits. Each permit entitles its owner to emit one ton of chemicals per day. To achieve the socially optimal quantity of pollution, the government auctions off 140 million pollution permits. Given this quantity of permits, the price for each permit in the market for pollution rights will be $----- . The previous analysis hinges on the government having good information regarding either the demand for pollution permits or the optimal level of pollution (or both). Given that the appropriate policy (tradable permits or corrective taxes) can depend on the available information and the policy goal, consider the following scenario. Suppose the government knows the optimal quantity of pollution as well as how much it costs a particular polluting firm to reduce pollution at each…
- Explain: “Without a market for pollution rights, dumping pollutants into the air or water is costless; in the presence of the right to buy and sell pollution rights, dumping pollutants creates an opportunity cost for the polluter.” What is the significance of this opportunity cost to the search for better technology to reduce pollution?Air pollution creates a negative externality—a cost suffered by a third party as a result of an economic transaction. A standard solution to a negative externality is a Pigouvian tax, a tax that raises the marginal private cost of pollution emissions to the level of the marginal social cost. The socially optimal quantity of pollution emissions is then determined by the intersection of the marginal private benefit, or demand, curve and the marginal social cost curve. The article notes that "putting a dollar value on the benefits of cleaner air has been difficult." Assuming this problem has been resolved, in the accompanying diagram, move the endpoints of line Smarginal social cost to show the marginal social cost curve. Then move the line labeled "Tax" to show the amount of the tax needed to limit emissions to the socially optimal level.Parks confer many external benefits on society: open space, trees that reduce pollution, and so on. Therefore, the market equilibrium quantity of parks is not equal to the socially optimal quantity. The following graph shows the demand for parks (their private value), the supply of parks (the private cost of producing them), and the social value of parks, including both the private value and external benefits. Use the black point (plus symbol) to indicate the market equilibrium quantity. Next, use the purple point (diamond symbol) to indicate the socially optimal quantity.
- Economists Kenneth Chay and Michael Greenstone found that in the two years following the passage of the Clean Air Act of 1970, the sharp reduction in air pollution also led to a decline in infant deaths. Although this and other studies provide compelling evidence of the link between pollution and infant health, it is not clear that reductions from the much lower levels of ambient pollution today would have the same effect. Which of the following reasons could explain this? A. Today, the level of pollution is much higher. Therefore, it will take a much larger reduction in air pollution to reap benefits similar to those in 1970. B. When levels of pollution are high, the marginal benefit of reducing pollution also is high. It follows therefore that the benefit of reducing air pollution in 1970 would be much higher than the benefit from a proportional reduction in air pollution today when the level of pollution is much lower. C. When levels of pollution are…Briefly discuss some ways the government could ensure a market with a positive externality could encourage production of the socially optimal output.b. If firms' abatement costs fall, how, if at all, does this affect the amount of pollution that firms will emit if there is a limit on pollution?
- A developing country implements pollution laws for the first time. Initially, there are some relatively cheap ways to reduce pollution and results are easily evident. After twenty years, they've found that the more one reduces pollution, the higher the marginal benefit. the lower the marginal benefit. the lower the marginal cost.Air horns impose many external costs on society: the risk of being deafened, the annoyance of being awakened in the middle of the night, and so on. Therefore, the market equilibrium quantity of air horns is not equal to the socially optimal quantity. The following graph shows the demand for air horns (their private value), the supply of air horns (the private cost of producing them), and the social cost of air horns, including both the private cost and external costs. Use the black point (plus symbol) to indicate the market equilibrium quantity. Next, use the purple point (diamond symbol) to indicate the socially optimal quantity.What will a corrective tax equal to the external cost imposed on polluters result in? It will increase the level of pollution. It will force polluters to internalize the external cost resulting from their actions. It will eliminate all pollution. It will usually have NO impact whatsoever on pollution levels, but will generate tax revenue for the government.