Many economists favor a carbon tax as a way to discourage CO2 emissions. Suppose such a...

Many economists favor a carbon tax as a way to discourage CO2 emissions. Suppose such a tax were to be set at $20 per ton (907kg) of carbon emissions as (CO2). Consider a 50-MW, 35% efficient power plant that uses coal with a carbon intensity of 24gC/MJ.

a. How much per year would this power plant pay in carbon tax?

b. Suppose a tree plantation sequesters (removes from the atmosphere and stores in biomass) 20,000kg of carbon dioxide per year per acre over the next 40 years the trees are growing (after which time the forest is mature and no further accumulation occurs). What area of forest would have to be planted to offset the power plant’s emissions over the next 40 years (roughly the lifetime of the power plant)?

c. What is the maximum the power plant owners would be willing to pay for this forest per acre? (do not use discounting)

Expert Solution

queen_honey_blossom answered 2 months ago

is China a net exporter of carbon emissions (co2) why or why not?

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