Two western coal power plants (Astoria and Boardman) in Oregon emit SO2 as a result of...

Two western coal power plants (Astoria and Boardman) in Oregon emit SO2 as a result of combustion. SO2 abatement costs increase with the amount of abatement for all power plants, but because of their different sizes and technology, they have different abatement costs. The Marginal Abatement Cost (MAC) equations for each firm are MC=4*QA & MC=8*QB, where QA is the amount of abatement at each the Astoria plant and QB is the amount of abatement at Boardman. Currently, they each emit 15 tons of SO2 for a total of 30. How much will the government collect in taxes?

Solutions

Expert Solution

Both the coal power plants emit 15 tons of SO₂.

So marginal abatement cost for the powerplant in Astoria is (4*15) = 60 units.

Marginal abatement cost for the powerplant in Boarman is (8*15) = 120 units.

After the abatement the powerplants will emmit a minimum amount of SO₂ and thus govt. will collect taxes according to the imposed tax rate.(Not mentioned in the question)

I think this is the correct answer for this question as tax rate is not mentioned. Dont flag the answer if it is otherwise.

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

There are two coal-fired power plants located in the vicinity of a major metropolitan area. These...

There are two coal-fired power plants located in the vicinity of a major metropolitan area. These power plants emit sulphur dioxide, which causes respiratory issues for the metro population as well as resulting in acidic rainfall. The EPA has determined that the amount of sulphur dioxide emitted needs to be reduced by 180 tons. The marginal abatement cost function for the first power plant is given by MC(x) = 5x and the marginal abatement cost function for the second power plant...

There are two coal-fired power plants located in the vicinity of a major metropolitan area. These...

There are two coal-fired power plants located in the vicinity of a major metropolitan area. These power plants emit sulphur dioxide, which causes respiratory issues for the metro population as well as resulting in acidic rainfall. The EPA has determined that the amount of sulphur dioxide emitted needs to be reduced by 169 tons. The marginal abatement cost function for the first power plant is given by MC(x) = 4x and the marginal abatement cost function for the second power...

Consider two 50 MW power generating plants. One plant is fueled by combustion of coal, the...

Consider two 50 MW power generating plants. One plant is fueled by combustion of coal, the other by solar energy. Using the concept of exergy, explain why the ecological impacts of the solar power process are lower than the coal fired process. Use words and diagrams in your answer

Consider the environmental damage that results from the emissions of coal-fired power plants. These plants produce...

Consider the environmental damage that results from the emissions of coal-fired power plants. These plants produce pollutants such as sulfur dioxide (SO2) and nitrogen oxide (NOx), which combine with hydrogen to make acid rain. They release mercury into the environment and emit other particulate matter such as soot, as well. Which of these externalities are highly localized, and which are borne by society at large? Explain

How to calculate theoritical NOx and SO2 (mg/Nm3) in gases at coal fired power plant, if...

How to calculate theoritical NOx and SO2 (mg/Nm3) in gases at coal fired power plant, if known : Coal Calorific Value = 4500 kcal/kg Fuel consumption = 180 t/h Excess air = 18% Oxygen in exhaust gases = 5% Flue Gas Temperature in exhaust gases = 135 deg C Carbon Content = 30.110 Hydrogen Content = 3.610 Oxygen Content = 9.850 Sulfur Content = 0.330 Nitrogen Content = 0.700 Ash Content = 5.740 Moisture Content = 32.530 Thank you!

Suppose there are only two sources of SO2 emissions in Florida. Source 1 is a coal...

Suppose there are only two sources of SO2 emissions in Florida. Source 1 is a coal fired power plant and Source 2 is an oil refinery. Marginal control costs for the two firms are given by MCC1=10*q1 and MCC2=15*q2, where q1 and q2 represent the tons of pollution that each respective firm controls. Both sources currently emit 20 tons of sulfur dioxide. Florida's government decides that it wants to reduce SO2 pollution by 20 tons total. Next, suppose the government...

Principles of Sustainability Hydroelectric dams provide clean power compared to coal-fired power plants, Do you...

** Principles of Sustainability** Hydroelectric dams provide clean power compared to coal-fired power plants, Do you think the advantage is worth the related environmental and social costs? why or why not?

3) You are interested in the effects of coal-fired power plants on local mercury contamination in...

3) You are interested in the effects of coal-fired power plants on local mercury contamination in wetlands. Your funding comes from a local power company that wants 2 of the plants to be their power plants in Illinois. You look at a map and select 2 of their plants and 2 plants that are of similar energy output. You want to know if the power plant is having an effect on mercury concentrations in sediment samples. In addition to what...

Coal-fired power plants are known to release a lot of pollutants such as sulphur dioxide, carbon...

Coal-fired power plants are known to release a lot of pollutants such as sulphur dioxide, carbon monoxide, mercury, ashes, etc. (i) Does it matter to a coal-fired power plant whether there is a liability law or not? If so, explain in what ways. (ii) Is there is any incentive to innovate (i.e. adopt new abatement technology) under a liability law for a polluter? Explain.

1000 MW coal-fired power plant emits SO2 at the legally allowed limit of 6.47 x 108...

1000 MW coal-fired power plant emits SO2 at the legally allowed limit of 6.47 x 108 g/sec (equivalent to 0.6 lb per 106 BTU). The stack has an effective height of 300 m. It is a cloudy summer day and the wind speed at 10-m is measured at 2.5 m/sec. What is the ground level concentration of SO2 4 km directly downwind. Assume a value for “p” of 0.25.EnvEng please help me solve! thanks!

Subjects