Question
In: Economics
Suppose we have one hundred different firms emitting pollution. The Ministry of the Environment and Natural...
Suppose we have one hundred different firms emitting pollution. The Ministry of the Environment and Natural Resource (MOENR) currently regulates these firms by requiring specific pollution control equipment to be installed by each firm. The MOENR is considering issuing tradable permits to each firm indicating how much pollution the firm may emit. Permits will reduce pollution in the same amount as the technology regulation. Discuss the implication of switching to tradable permits on the likelihood of seeing research and development to reduce the cost of pollution control.
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
6.) Externalities, the Environment, and Natural Resources Explain why some politicians believe paying firms for pollution...
6.) Externalities, the Environment, and Natural Resources
Explain why some politicians believe paying firms for pollution
reduction is an effective incentive to obtaining cleaner air and
water. Then, explain whether or not the incentive is effective in
the short-run and in the long-run.
Assume that there are two firms, each emitting 20 units of pollutants into the environment, for...
Assume that there are two firms, each emitting 20 units of
pollutants into the environment, for a total of 40 units in their
region. The government sets an aggregate abatement standard (AST)
of 20 units. The polluters' cost functions are as follows, where
the dollar values are in thousands:
Polluter
1: TAC1=
10 +
0.75(A1)2, Polluter
2: TAC2=
5 +
0.5(A2)2, MAC1=
1.5A1, MAC2=
A2.
a) Suppose that the government allocates the abatement
responsibility uniformly, requiring each polluter to abate 10 units
of pollution. Quantitatively...
The Ministry of Natural Resources and Environment of your country steps up measures to control the...
The Ministry of Natural Resources and Environment of your
country steps up measures to control the pollution and hires you as
an environmental economist to estimate costs associated with
pollution control as the industries located along a river discharge
highly toxic effluents into the river. What approaches and relevant
issues will you take into considerations when estimating the
pollution abatement costs? *10 marks question . Need explanations
and diagrams tq*
Suppose there are two firms: Firm A and Firm B. These firms are each emitting 75...
Suppose there are two firms: Firm A and Firm B. These firms are
each emitting 75 tons of pollution. Firm A faces marginal abatement
cost MACA = 3A and Firm B faces marginal abatement cost MACB = 9A
where A is tons of pollution abatement. The government’s control
authority wishes the firms to reduce their total emissions by 60
tons using a Cap and Trade system and will initially auction off
the permits
1a How many allowances will the control...
Suppose that you belong to a panel with representatives from the Ministry of the Environment and...
Suppose that you belong to a panel with representatives from the
Ministry of the Environment and the Accreditation Services Branch
of the Standards Council of Canada. You are responsible for testing
scrubbers, i.e. devices to capture carbon dioxide
from smokestacks. You do so by measuring how much carbon dioxide
they capture in a standard lab setting.
A manufacturer has stated, "When our Scrubber 2 is installed in
the standard lab setting, the amount of carbon dioxide captured
follows a normal...
Several generators pollute the environment by emitting carbon dioxide. Generators have different costs of reducing carbon...
Several generators pollute the environment by emitting carbon
dioxide. Generators have different costs of reducing carbon
emissions. The government wants to put a cap on total emissions.
Putting a cap on each generator is more efficient compared to
issuing tradeable emissions permits to each generator. Is this true
or false? Explain your answer.
Several generators pollute the environment by emitting carbon dioxide. Generators have different costs of reducing carbon...
Several generators pollute the environment by emitting carbon
dioxide. Generators have different costs of reducing carbon
emissions. The government wants to put a cap on total emissions.
Putting a cap on each generator is more efficient compared to
issuing tradeable emissions permits to each generator. Is this true
or false?
Explain your answer elaborately.
Several generators pollute the environment by emitting carbon dioxide. Generators have different costs of reducing carbon...
Several generators pollute the environment by emitting carbon
dioxide. Generators have different costs of reducing carbon
emissions. The government wants to put a cap on total emissions.
Putting a cap on each generator is more efficient compared to
issuing tradeable emissions permits to each generator. Is this true
or false?
Suppose the natural gas industry consisted of only two firms. Let these firms have identical cost...
Suppose the natural gas industry consisted of only two firms.
Let these firms have identical cost functions, C(q) = 40q. Assume
the demand curve for the industry is given by P = 100 − Q and that
each firm expects the other to behave as a Cournot competitor.
a) Calculate the Cournot-Nash equilibrium for each firm,
assuming that each chooses the output level that maximizes its
profits when taking its rival’s output as given. What are the
profits of each...
Suppose the natural gas industr y consisted of only two firms. L et these firms have...
Suppose the natural gas industr y consisted of only two firms. L
et these firms have identical cost functions, C(q) = 40q . Assume
the demand curve f or the industry is given by P = 100 ? Q and that
each firm expects the othe r to behave as a Cournot competi tor. a.
Calculate the Cournot-Nash equi librium for each firm, assuming
that each chooses the output level that maximizes its pr ofits when
taking its rival’s output...
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