2. Country X has carbon emission of 5000 units per year. The country is involved with Paris Agreement and will strive to reduce the emission of pollutants by 80%. The country has decided that the appropriate strategy is a permit system. (These problems are all sequential) a. How many permits should the government provide? 1000 permits b. How many pollutants should be cleaned up every year? 4000 units C. Assume that the marginal benefit of abatement and the marginal cost is as followed: MBAbatement 500 – 0.5QAbatement
2. Country X has carbon emission of 5000 units per year. The country is involved with Paris Agreement and will strive to reduce the emission of pollutants by 80%. The country has decided that the appropriate strategy is a permit system. (These problems are all sequential) a. How many permits should the government provide? 1000 permits b. How many pollutants should be cleaned up every year? 4000 units C. Assume that the marginal benefit of abatement and the marginal cost is as followed: MBAbatement 500 – 0.5QAbatement
Chapter14: Environmental Economics
Section: Chapter Questions
Problem 7SQ
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