None +1Oregon legislative committee passes cap-and-trade billLawmakers are moving Oregon a step closer to adopting what would be the nation's second economywide carbonpricing scheme, after California.Price and cost (cents per mile)40-QS=MCSource: Portland Business Journal, May 17, 201935-The transportation sector is Oregon's largest contributor to carbon emissions.30-ΟUnder what conditions would Oregon's carbon pricing scheme reduce carbon emissions to the efficient quantity?Use a graph to illustrate your explanation. Show the effects of setting the price of carbon too low and too high.25Ο20OThe graph shows the market for transportation in Oregon with no cap-and-trade system.On the graph, draw the marginal social cost curve of transportation. Label it.Draw a point to show the outcome of a cap-and-trade system that results in an efficient amount of emissions. Label it 1.Draw a point to show the outcome when the price of a permit is too low. Label it 2.Draw a point to show the outcome when the price of a permit is too high. Label it 3.15-10-D=MB100200300 400 500 600 700 800Quantity /theande of milacl

A cap-and-trade system imposes a carbon emission cap on emissions from transportation-related…

Answered: +1 Oregon legislative committee passes…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter12: Environmental Protection And Negative Externalities

Section: Chapter Questions

Problem 11SCQ: The state of Colorado requires oil and gas companies who use fracking techniques to retune the land...

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How can high-income countries benefit from covering much of the cost of reducing pollution created by low-income countries?
A city currently emits 15 million gallons (MG) of raw sewage into a lake that is beside the city. Table 12.13 shows the total costs (TC) in thousands of dollars of cleaning up the sewage to different levels, together with the total benefits (TB) of doing so. Benefits include environmental, recreational, health, and industrial benefits. Using the information in Table 12.13 calculate the marginal costs and marginal benefits of reducing sewage emissions for this City. What is the optimal level of sewage for this city? How can you tell?
Classify the following pollution-control policies as command-and-control or market incentive based. A state emissions tax on the quantity of carbon emitted by each firm. The federal government requires domestic auto companies to improve car emissions by 2020. The EPA sets national standards for water quality. A city sells permits to films that allow them to emit a specified quantity of pollution. The federal government pays fishermen to preserve salmon.
An emissions tax on a quantity of emissions from a film is not a command-and-control approach to reducing pollution. Why?
Consider two approaches to reducing emissions of CO2 into the environment from manufacturing industries in the United States. In the first approach, the U.S. government makes it a policy to use only predetermined technologies. In the second approach, the U.S. government determines which technologies are cleaner and subsidizes their use. Of the two approaches, which is the command-and-control policy?
Can extreme levels of pollution hurt the economic development of a high-income country? Why or why not?
The state of Colorado requires oil and gas companies who use fracking techniques to retune the land to its original condition after the oil and gas extractions. Table 12.9 shows the total cost and total benefits (in dollars) of this policy. Calculate the marginal cost and the marginal benefit at each quantity (acre) of land restored. See Production. Costs and Industry Structure if you need a refresher on how to calculate marginal costs and benefits. If we apply marginal analysis, what is the optimal amount of land to be restored?
Oregon legislative committee passes cap-and-trade bill Lawmakers are moving Oregon a step closer to adopting what would be the nation's second economywide carbon pricing scheme. after California. Price and cost (cents per mile) Q 40- S=MC a G Source: Portland Business Journal, May 17, 2019 35 The transportation sector is Oregon's largest contributor to carbon emissions. Under what conditions would Oregon's carbon pricing scheme reduce carbon emissions to the efficient quantity? Use a graph to illustrate your explanation. Show the effects of setting the price of carbon too low and too high. 30- 25 20 15 and permits traded at a The efficient quantity of transportation would be produced if the quantity of permits was set such that, price OA. marginal private cost of transportation equals marginal benefit, above marginal external cost B. marginal social cost of transportation equals marginal benefit, equal to marginal external cost OC. marginal social cost of transportation equals marginal…
4. Understanding different policy options to correct for negativeexternalities Carbon dioxide emissions have been linked to melting of sea ice. The following table lists some potential regulations targeting the amount of airborne carbon dioxide. For each policy listed, identify whether it is a command-and-control policy (regulation), tradable permit system, corrective subsidy, or corrective tax. Tradable Permit System Public Policy The government limits total carbon-dioxide emissions by all factories to 260,000 tons per five years. Each individual factory is given the right to emit 230 tons of carbon dioxide, and factories may buy and sell these rights in a marketplace. Trees take carbon dioxide out of the air and convert it to oxygen, so the government funds a tree-planting initiative by offering $440 to any citizen who plants a tree. The government orders every factory to adopt a new technology, which reduces carbon-dioxide emissions into the atmosphere. The government charges…
10. Understanding different policy options to correct for negativeexternalities Carbon dioxide emissions have been linked to degradation of air quality. The following table lists some potential regulations targeting the amount of airbome carbon dioxide. For each policy listed, identify whether it is a command-and-control policy (regulation), tradable permit system, corrective subsidy, or corrective tax. о Public Policy Command-and- Control Policy Tradable Permit System Corrective Subsidy Corrective Тах Trees take carbon dioxide out of the air and convert it to oxygen, so the govemment funds a tree-planting initiative by offering $440 to any citizen who plants a tree. 0 о The government charges factories $440 for every ton of carbon dioxide they emit о о The government orders every factory to adopt a new technology, which reduces carbon-dioxide emissions into the atmosphere. 0 ° ° о The government limits total carbon-dioxide emissions by all factories to 260,000 tons per ten years. Each…
4. Understanding different policy options to correct for negative externalities Carbon dioxide emissions have been linked to worsening climate conditions. The following table lists some possible public policies aimed at reducing the amount of carbon dioxide in the air. For each policy listed, identify whether it is a command-and-control policy (regulation), tradable permit system, corrective subsidy, or corrective tax. Command- and- Tradable Control Permit Corrective Corrective Public Policy Policy System Subsidy Таx The government agrees to reimburse all factories that purchase new, emissions- reducing technology in order to provide cleaner air. The government limits total carbon-dioxide emissions by all factories to 160,000 tons per month. Each individual factory is given the right to emit 130 tons of carbon dioxide, and factories may buy and sell these rights in a marketplace. The government charges factories $340 for every ton of carbon dioxide they emit. The government orders…
1. High concentrations of sulfur emitted by coal fired electricity plants are toxic for humans. They also form sulfuric acid that falls in rain and damages crops, forests, and lakes. Since 1995, the US has operated a sulfur oxide tradable permit market that reduced sulfur emissions to less than half their 1980 level. a. What is it about the coal fired electricity producers and the marginal damage of their output that probably made the tradable permit market more socially efficient than a regulation requiring the same percentage reduction in emissions every year at every coal fired electricity plant? (Note that setting up a permit market is much more expensive than imposing such a regulation.) Explain your answer. b. Draw a graph of demand, supply and social marginal cost of US coal fired electricity in a one year period just before the pandemic. Do your best to make your demand and supply curves reasonably approximate demand and supply of this good during that period. Draw the graph so…

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