You have just been elected governor of a medium-sized U.S. state. Citizens want you to take bold action to reduce greenhouse gas emissions— but they do not want prices of gasoline or electricity to rise. Industries in your state are wary of emissions reductions being required of them but are willing to explore ideas with you. The state legislature will support your efforts as long as you remain popular with voters. The state to your west has just passed ambitious legislation mandating steep emissions cuts. The state to your east has joined a regional emissions trading consortium. The state to your north has just established a revenue-neutral carbon tax. What actions will you take in your first year as governor, and why? What effects would you expect each action to have?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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You have just been elected governor of a medium-sized U.S. state. Citizens want you to take bold action to reduce greenhouse gas emissions— but they do not want prices of gasoline or electricity to rise. Industries in your state are wary of emissions reductions being required of them but are willing to explore ideas with you. The state legislature will support your efforts as long as you remain popular with voters. The state to your west has just passed ambitious legislation mandating steep emissions cuts. The state to your east has joined a regional emissions trading consortium. The state to your north has just established a revenue-neutral carbon tax. What actions will you take in your first year as governor, and why? What effects would you expect each action to have?

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