Which of the following policies aimed at reducing sulfur pollution would create an incentive for fırms to find new innovative ways to reduce sulfur emissions? (Select all that apply) A requirement that all firms use a scrubber that removes sulfur from the smoke stack Marketable permits for sulfur emissions A sulfur pollution charge A requirement that all firms use a certain type of fuel
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- The table below shows current carbon emissions and the cost of reducing carbon emissions for three industrial firms. The government introduces a cap-and-trade policy to regulate carbon emissions. The total cap on emissions is 180 tonnes of carbon, and each firm receives an initial allocation of tradable permits for 60 tonnes of carbon emissions. Current carbon emissions Firm A B C (tonnes) 80 100 70 a. Firm A will buy 40 emission ✓ Firm C. Cost of reducing emissions by 1 ton ($) 150 200 50 Firm B will sell 20 emissior Firm C. Instructions: Round your answer to the nearest whole number. b. To break even, the selling firm must receive $ 150Only typed answer and please don't use chatgpt The inverse demand for leather is given by P = 50-0.5Q. The industry supply of leather is determined by its marginal cost: MC = 0.4Q. Unfortunately, the production of leather causes noxious chemical residue to leach into groundwater supplies. The external marginal cost caused by these residues grows with the amount of output, and is measured as EMC = 0.05Q. 1A. How many leather is produced in the free market if the externality is not corrected. B) What is the free market price of the leather if the externality is not corrected? C) What is the social marginal cost?The table below shows the demand for pollution permits to emit hydrocarbons in a particular industrial park. Each permit allows the owner to release one tonne of pollutants into the atmosphere. Price per Pollution Permit Quantity of Permits $4,500 100 4,000 200 3,500 300 3,000 400 2,500 500 2,000 600 1,500 700 were charged, how many tonnes of pollutants would be discharged into the atmosphere, assuming a straight-line a. If fee for a pollution perm demand curve? Quantity: tonnes b. Suppose government were to set a fee of $2,500 per pollution permit. How many tonnes of pollutants would now be dumped? What is the total revenue received by government? Quantity: tonnes Total revenue: $ c. Suppose that a new technology allows for a significant reduction in hydrocarbons at a relatively low cost so that the demand for pollution permits in the industrial park drops by 200 tonnes. Assuming that government holds the permit fee at $2,500, how many tonnes of pollutants would now be dumped? What…
- HighFlyer Airlines wants to build new airplanes with greatly increased cabin space. This will allow HighFlyer Airlines to give passengers more comfort and sell more tickets at a higher price. However, redesigning the cabin means rethinking many other elements of the airplane as well, like engine and luggage placement, and the most efficient shape of the plane for moving through the air. HighFlyer Airlines has developed a list of possible methods to increase cabin space, along with estimates of how these approaches would affect the planes operating costs and ticket sales. Based on these estimates, Table 13.5 shows the value of R, how much should the firm invest in R on top of the private return; that is, an R private return to HighFlyer Airlines would have a 9 social return. How much investment is socially optimal at the 6 interest rate?The table below shows the demand for pollution permits to emit hydrocarbons in a particular industrial park. Each permit allows the owner to release one tonne of pollutants into the atmosphere. Price perPollution Permit Quantity of Permits $4,500 75 4,000 150 3,500 225 3,000 300 2,500 375 2,000 450 1,500 525 a. If no fee for a pollution permit were charged, how many tonnes of pollutants would be discharged into the atmosphere, assuming a straight-line demand curve? Quantity: tonnesb. Suppose government were to set a fee of $3,500 per pollution permit. How many tonnes of pollutants would now be dumped? What is the total revenue received by government? Quantity: tonnes Total revenue: $ c. Suppose that a new technology allows for a significant reduction in hydrocarbons at a relatively low cost so that the demand for pollution permits in the industrial park drops by 150 tonnes. Assuming that government holds the permit fee at $3,500, how many tonnes of…Consider the following graph that shows the marginal abatement cost (MAC) curve for a coal power plan for reducing local air pollution and the marginal damage (MD) curve for those living around the coal power plant. MD (E) MAC (E b. Emissions E-0 E EL E-Max AMax Or Abatement E A-0 What are the total abatement costs at E' (enter your answer with the letters and "+" signs as "a+b+c+d+e+f", without the quotation marks. What are the total abatement costs at E-0 (enter your answer with the letters and "+" signs as as "a+b+c+d+c+f", without the quotation marks. If the property rights were with the coal power plant how much Emissions would we see? (enter one of the following, "E-0", "E", "E1", "E-Max") If the property rights were with the people how much Emissions would we see? (enter one of the following. "E-0", "E", "E1 "E-Max") What is the socially optimal level of emissions (choose from one of the following and enter as written without the quotation marks, "E-0". "E"E1 "E-Max").
- Imagine a firm’s marginal abatement cost function with existing technologies is: MAC = 100 – 2E. If the firm adopts new pollution abatement technologies, its marginal abatement cost function will be: MAC = 50 – E. If the government raises the tax on emissions from $4 to $12, the benefits of adopting the new technologies increase by $____Imagine a firm's marginal abatement cost function with existing technologies is: MAC = 20 E. If the firm adopts new pollution abatement technologies, its marginal abatement cost function will be: MAC = 100.5E. The adoption costs for the new technology are $4. If the government raises the tax on emissions from $2 to $4, the firm's total costs increase by $ HINT: Total costs include tax payments, total abatement costs, and (if relevant) adoption costs for the new technology. Question 14Select one: a. $20. b. $ 24. c. $10. d. $30.Imagine a firm's marginal abatement cost function with existing technologies is: MAC = 150 – 6E. If the firm adopts new pollution abatement technologies, its marginal abatement cost function will be: MAC = 75 – 3E. If the government raises the tax on emissions from $12 to $24, the benefits of adopting the new technologies increase by $_. Select one: a. $6. b. $24. c. $12. d. $36.
- Refer to the Figure below. In Panel (b), the increase in total cost of producing the original quantity of output at the new cost associated with increased environmental regulations would be $ $ P₂ P₁ P₂ P₁ a Demand ₂ e (a) Demand 92 91 Quantity of output (b) 4₁ Quantity of a) p2 x r₁. b) (d + e + f). c) p2 x r₂. G₂ C₁ G₂ C₁₁. Appalachian Coal Mining believes that it can increase labor productivity and, therefore, net revenue by reducing air pollution in its mines. It estimates that the marginal cost function for reducing pollution by installing additional capital equipment is MC=40P Where P represents a reduction of one unit of pollution in the mines. It also feels that for every unit of pollution reduction the marginal increase in revenue (MR) is MR=1000-10P How much pollution reduction should Appalachian Coal Mining undertake?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.