here are three industrial firms in Happy Valley: Firm A Pollution Level = 70 units Cost to Reduce Pollution = $20 / Unit Firm B Pollution Level = 80 units Cost to Reduce Pollution = $25 / Unit Firm C Pollution Level = 50 units Cost to Reduce Pollution = $10 / Unit The government is considering options to reduce the pollution level to 90 total units. Suppose they decide to impose a 30 unit cap per firm. What would the total cost of the pollution cap be?Suppose the government decides to impose a pollution tax of $21 per unit. This tax will reduce the overall level of pollution to how many units?How much tax revenue would a $21 per unit pollution tax generate?
here are three industrial firms in Happy Valley: Firm A Pollution Level = 70 units Cost...
There are three industrial firms in Happy Valley. 9. Problems and Applications 99 There are three industrial firms in Happy Valley. Initial Pollution Level (Units) 50 25 40 Cost of Reducing Pollution by 1 Unit (Dollars) 40 20 30 Firm The government wants to reduce pollution to 75 units, so it gives each firm 25 tradable pollution permits. Because firmililli has the highest cost of reducing pollution by 1 unit, it would like to another firm. Because firm v the...
There are three industrial firms in Happy Valley.The government wants to reduce pollution to 90 units, so it gives each firm 30 tradable pollution permits. Because firm _______ has the highest cost of reducing pollution by 1 unit, it would like to _______ another firm. Because firm _______ has the lowest cost of reducing pollution by 1 unit, it is willing to _______ the firm with the highest cost. Complete the second column of the following table by indicating who buys and...
5. Correcting for negative externalities - Regulation versus tradable permits Suppose the government wants to reduce the total pollution emitted by three local firms. Currently, each firm is creating 4 units of pollution in the area, for a total of 12 pollution units. If the government wants to reduce total pollution in the area to 6 units, it can choose between the following two methods: Available Methods to Reduce Pollution 1. The government sets pollution standards using regulation. 2. The government allocates tradable pollution...
Possible Solutions Total Cost of eliminating 2 units of pollution The options for the first fill in the blank (Firm X) are: $295, $120, $215, $320. The options for the second fill in the blank (Firm Y) are: $1250, $800, $1850, $1500 The options for the third fill in the blank (Firm Z) are: $180, $250, $230, $100 The options for the forth fill in the blank are: $1490, $2420, $1625, $1645 Firm X Firm Y Firm Z Initial pollution...
Suppose the government wants to reduce the total pollution emitted by three local firms. Currently, each firm is creating 4 units of pollution in the area, for a total of 12 pollution units. If the government wants to reduce total pollution in the area to 6 units, it can choose between the following two methods: Available Methods to Reduce Pollution 1. The government sets pollution standards using regulation 2. The government allocates tradable pollution permits. Each firm faces different costs,...
Suppose the government wants to reduce the total pollution emitted by three firms In Rs brea. Currently, each firm is creating 4 units of pollution in the area, for a total of 12 pollution units. The government wants to reduce total pollution in the area to 6 units. In order to do so, the goverment can choose between the following two methods. Method 1: The government sets pollution standards. Method 2: The government allocates tradable pollution permits. Compare the two...
Suppose the government wants to reduce the total pollution emitted by three firms in its area. Currently, each firm is creating 4 units of pollution in the area, for a total of 12 pollution units. The government wants to reduce total pollution in the area to 6 units. In order to do so the government can choose between two methods: Under method 1, the governments sets pollution standards, whereas under method 2, the government allocated tradable pollution permits, Let’s compare...
Suppose the government wants to reduce the total pollution emitted by three local firms. Currently, each firm is creating 4 units of pollution in the area, for a total of 12 pollution units. If the government wants to reduce total pollution in the area to 6 units, it can choose between the following two methods: Available Methods to Reduce Pollution 1. The government sets pollution standards using regulation. 2. The government allocates tradable pollution permits. Each firm faces different costs, so reducing pollution is...
Suppose the government wants to reduce the total pollution emitted by three local firms. Currently, each firm is creating 4 units of pollution in the area, for a total of 12 pollution units. If the government wants to reduce total pollution in the area to 6 units, it can choose between the following two methods: Available Methods to Reduce Pollution 1. The government sets pollution standards using regulation. 2. The government allocates tradable pollution permits. Each firm faces different costs,...
There are three manufacturing firms in a small town. The table below shows each firms current pollution level and what it costs each firm, per unit, to reduce pollution Firm Initial Pollution Level (Units) Cost of Reducing Pollution by 1 Unit (Dollars) 40 60 14 80 The government wants to reduce pollution to 120 units, so it decides to give each firm 40 pollution permits. It has not yet decided whether or not to make the permits tradable. Which of...