QUESTION 10 Plastic bags take up to 1000 years to decompose in landfills, and end up in oceans where they are highly hazardous to marine life. The Australian Government is aiming to reduce Australia's plastic waste to 30% below 2020 waste levels by 2030. Reforms A Plastic waste change (compared to 2020 levels) by 2030. 10% increase Total cost for industries to introduce reform measures (billions of dollars) 0 C D 30% reduction 50% reduction B No change 0.3 1.2 1.5 a. One possible solution to reduce plastic waste would be to make the marginal private cost of plastic waste more closely reflect the marginal social cost. This would be achieved by the Government Type T for increasing company Tax, P for increasing Personal tax, W for introducing a tax on plastic waste or B for Building more landfill stations. b. Imagine the Government decided to implement a system using market based instruments to price plastic waste. Firms would have to buy the right to produce plastic waste that exceeded levels in 2020. What is the minimum total cost of introducing the instruments to reduce plastic waste to achieve the goal (in billions of dollars to one decimal place)? $ billion. c. If the Government decided to force firms to shut down if they exceeded their plastic waste limits, would this be efficient? Туре Y for Yes or N for No.
QUESTION 10 Plastic bags take up to 1000 years to decompose in landfills, and end up in oceans where they are highly hazardous to marine life. The Australian Government is aiming to reduce Australia's plastic waste to 30% below 2020 waste levels by 2030. Reforms A Plastic waste change (compared to 2020 levels) by 2030. 10% increase Total cost for industries to introduce reform measures (billions of dollars) 0 C D 30% reduction 50% reduction B No change 0.3 1.2 1.5 a. One possible solution to reduce plastic waste would be to make the marginal private cost of plastic waste more closely reflect the marginal social cost. This would be achieved by the Government Type T for increasing company Tax, P for increasing Personal tax, W for introducing a tax on plastic waste or B for Building more landfill stations. b. Imagine the Government decided to implement a system using market based instruments to price plastic waste. Firms would have to buy the right to produce plastic waste that exceeded levels in 2020. What is the minimum total cost of introducing the instruments to reduce plastic waste to achieve the goal (in billions of dollars to one decimal place)? $ billion. c. If the Government decided to force firms to shut down if they exceeded their plastic waste limits, would this be efficient? Туре Y for Yes or N for No.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:QUESTION 10
Plastic bags take up to 1000 years to decompose in landfills, and end up in oceans where they are highly hazardous to marine life. The Australian Government is
aiming to reduce Australia's plastic waste to 30% below 2020 waste levels by 2030.
Reforms
A
Plastic waste change (compared to 2020 levels) by
2030.
10% increase
Total cost for industries to introduce reform
measures (billions of dollars)
0
C
D
30% reduction
50% reduction
B
No change
0.3
1.2
1.5
a. One possible solution to reduce plastic waste would be to make the marginal private cost of plastic waste more closely reflect the marginal social cost. This
would be achieved by the Government
Type T for increasing company Tax, P for increasing Personal tax, W for introducing a
tax on plastic waste or B for Building more landfill stations.
b. Imagine the Government decided to implement a system using market based instruments to price plastic waste. Firms would have to buy the right to
produce plastic waste that exceeded levels in 2020. What is the minimum total cost of introducing the instruments to reduce plastic waste to achieve the
goal (in billions of dollars to one decimal place)? $
billion.
c. If the Government decided to force firms to shut down if they exceeded their plastic waste limits, would this be efficient?
Туре
Y for Yes or N for No.
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