The following companies all manufacture widgets and dump tons of glop into the air. Costs to clean up 1 ton of glop Current contribution to overall pollution Manufacturer Polluters-r-us Smog brothers inc $70 $100 $30 200 200 Really dirty industries The government wants to halve total pollution but does not know how much it will cost each company. Determine the total cost of the cleanup if the government employs a tradable permit scheme in which it gives the same amount of permits to each manufacturer at no cost. 200
The following companies all manufacture widgets and dump tons of glop into the air. Costs to clean up 1 ton of glop Current contribution to overall pollution Manufacturer Polluters-r-us Smog brothers inc $70 $100 $30 200 200 Really dirty industries The government wants to halve total pollution but does not know how much it will cost each company. Determine the total cost of the cleanup if the government employs a tradable permit scheme in which it gives the same amount of permits to each manufacturer at no cost. 200
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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