Which of the following are correct about carbon regulations. Please check all that apply.Firms generally prefer cap and trade programs (compared to carbon tax) due to cost certainty.Environmentalists typically prefer a cap and trade program (compared to a carbon tax) due tobenefits certainty.A cap and trade program regulates all firms selling services to other firms and/or consumers.A carbon tax program impacts all fossil fuel consumers.A carbon tax only impacts the heavy emitters, such as utilities, cement manufacturers, papermanufacturers, etc.

1. When cap and trade programs have predictable costs, businesses typically favor them over carbon…

Answered: Which of the following are correct…

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter30: Market Failure: Externalities, Public Goods, And Asymmetric Information

Section: Chapter Questions

Problem 14QP

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Similar questions

Draw a standard supply and demand diagram for televisions, and indicate the equilibrium price and output. a. Assuming that the production of televisions generates external costs, illustrate the effect of the producers being forced to pay a tax equal to the external costs generated, and indicate the equilibrium output. b. If instead of generating external costs, television production generates external benefits, illustrate the effect of the producers being given a subsidy equal to the external benefits generated, and indicate the equilibrium output.
Is zero pollution possible under a marketable permits system? Why or why not?
The main disadvantage of an emissions tax is that .... differences among firms are not incorporated into the policy firms lack the flexibility to pursue different technologies firms cannot behave in an economically-efficient manner. firms do not have the incentive to reduce pollution. the total pollution reduction from an emissions tax cannot be known for sure.
Explain the difference between regulating emissions via fees vs. standards. Which of the two would be more efficient if there are large differences between the firms’ marginal costs of abatement.
Suppose a country has two airlines. One is a small domestic airline that uses modern airplanes with lower CO2 emissions, and the other is a large international airline that uses older jumbo jets carrying hundreds of people at one time. A carbon emissions tax on airlines would be more efficient than a strict limit (command and control) on the total amount of carbon emissions each airline can produce. Two reasons that support this statement are: a. A carbon emissions tax would a.allow the larger airline to continue using its less efficient airplanes b.not allow the large airline to continue using its less efficient airplanes . b. A command-and-control policy would likely a.allow the larger airline to continue its service. b.force the larger airline to curb its service.
Suppose you want to put a dollar value on the external costs of carbon emissions from a power plant. What information or data would you obtain to measure the external (not social) cost?
Economics MPB (Marginal Private Benefit) =20-4Q (like a Demand Equation). MPC (Marginal Private Cost) = 4+2Q (like a Supply Equation). MEB (Marginal External Benefit) = 0 (an external benefit is a positive externality). MEC (Marginal External Cost) = 0.5Q(an external cost is a negative externality). Suppose Power for Health Earth owned the rights to pollute the atmosphere of the City of Atlanta, and it is negotiating with concerned residents willing to pay the company (Great Power) to produce less coal energy. For the 8th unit of coal energy, determine the range within which payment would be acceptable to Great Power and the concerned residents. %3D 1.) Show the following in the graph: a. the 8th unit b. the unit price Great Power would take c. the unit price the concerned residents would раy PLEASE HELP

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