Marketable permits work best when..: A. They are mandated by the federal government. B. Four or five thousand parties are interested in trading. C . A few dozen or a few hundred parties are highly interested in trading. D. Five firms are polluting and are willing to trade pollution permits.
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Marketable permits work best when..:
A. They are mandated by the federal government.
B. Four or five thousand parties are interested in trading.
C . A few dozen or a few hundred parties are highly interested in trading.
D. Five firms are polluting and are willing to trade pollution permits.
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- Define pollution charge and will our economy be able to control pollution? Share your thoughts in a paragraph.If producing a good generates pollution (a negative externality), from a social perspective ... a. the price will be too low and the quantity produced will be too low. b. the price will be too low and the quantity produced will be too high.c. the price will be too high and the quantity produced will be too low. d. the price will be too high and the quantity produced will be too high. e. the price will be too low but the quantity produced will be correct.Many economists would consider an efficient level of pollution control to occur where the marginal benefit of reducing pollution is ____________ the marginal cost of reducing pollution. a. greater than b. equal to c. less than
- Which of the following describes the effect of an optimal tax on pollution?Select one:a. a benevolent social planner is able to maximize productionb. producers choose not to produce any pollutionc. the value to consumers at market equilibrium exceeds the cost of production (including tax)d. producers internalize the cost of the pollutionTradable pollution permits a. set the price of pollution. b. set the quantity of pollution. c. determine the demand for pollution rights. d. reduce the incentive for technological innovations to further reduce pollution.What are pollution havens? How are they created or why do they exist? Why do economists think they may change over time and develop policies to reduce pollution?
- 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…a) What is market failure? Explain why a factory which emits pollution creates a market failure.Table 1 shows the demand schedule for electricity from a coal burning utility. Table 2 shows the utility's cost of producing electricity and the external cost of the pollution created. With no pollution control, calculate the quantity of electricity produced, the price of electricity, and the marginal external cost of the pollution generated. With no pollution control, the quantity of electricity produced is The price of electricity is cents a kilowatt. kilowatts a day. Table 1 Table 2 Price (cents per kilowatt) 4 8 12 16 20 24 Quantity (kilowatts per day) 0 100 200 300 400 500 Marginal cost 0 2 4 6 8 10 Quantity demanded (kilowatts per day) 500 400 300 200 100 0 Marginal external cost (cents per kilowatt) 0 2 4 6 8 10
- ītion, please answer the following questions: If society wishes to reduce pollution, why is it more efficient to tax the pollution rather than set a limit on pollution? 2. Why is it more efficient to tax pollution than to tax the output that produces pollution?Which one does not belong to the externalities contributed by oil? a. Emissions that pollute the environment. b. National security c. Hydrocarbons that potentially contribute to climate d. Mercury emission from burning oil to produce electricity.a. If improved technology causes firms' abatement costs to fall, how, if at all, does this affect the amount of pollution that firms will emit when there is a tax? Explain briefly with a diagram.
