See attached for environmental economics question part two ↑2. Suppose that the Marginal Abatement Cost function and the Marginal Damage functionfor an industry are given as follows:MAC = 80 -0.2eMD=0.3e0.3MIFor simplicity here, we are assuming that they are linear.× e. If the polluters have to compensate affected parties financially for any damages,what is the dollar amount of these damage payments at the level of emissionsfound in part d? How did you find your answer?f.What is the total cost to firms of this policy? How did you find your answer.g. What is the total cost to the rest of society of this policy?h. To society, what is the total benefit of this policy? Explain how you found youranswer.

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2. Suppose that the Marginal Abatement Cost function and the Marginal Damage function for an industry are given as follows: MAC = 80 -0.2e MD=0.3e For simplicity here, we are assuming that they are linear.

2. Suppose that the Marginal Abatement Cost function and the Marginal Damage function for an industry are given as follows: MAC = 80 -0.2e MD=0.3e For simplicity here, we are assuming that they are linear.

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Question

See attached for environmental economics question part two

↑
2. Suppose that the Marginal Abatement Cost function and the Marginal Damage function
for an industry are given as follows:
MAC = 80 -0.2e
MD=0.3e
0.3MI
For simplicity here, we are assuming that they are linear.
×

e. If the polluters have to compensate affected parties financially for any damages,
what is the dollar amount of these damage payments at the level of emissions
found in part d? How did you find your answer?
f.
What is the total cost to firms of this policy? How did you find your answer.
g. What is the total cost to the rest of society of this policy?
h. To society, what is the total benefit of this policy? Explain how you found your
answer.

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