(3) The Clean Air Act required the EPA to set the National Ambient Air Quality Standards at levels "requisite to protect the public health" with "an adequate margin of safety." This has beer referred to as zero-risk standards. Use the graph below to answer questions (3.1) and (3.2) concerning the economics of zero-risk ambient concentration standards. Aggregate marginal abatement costs Aggregate marginal damage

(3) The Clean Air Act required the EPA to set the National Ambient Air Quality Standards at levels "requisite to protect the public health" with "an adequate margin of safety." This has beer referred to as zero-risk standards. Use the graph below to answer questions (3.1) and (3.2) concerning the economics of zero-risk ambient concentration standards. Aggregate marginal abatement costs Aggregate marginal damage

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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5) Suppose that an international agreement requires exporters to reduce their carbon emissions. In this context, government subsidies are provided to R&Ds that will enable green-friendly production in exporting industries that produce high-tech.a) Explain what might be the reasons for the implementation of such an activist policy.(Answer this question with the arguments of your main course book, (Krugman; Obstfeld; Melitz; 2015))b) Describe how the Environmental Kuznet curve works. Let's assume that there is a green-friendly technology transfer from developed countries to less developed countries in order to achieve the goal of a decrease in emission, then what will happen to the curve?
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Correct answer with explan in minimum 300 words
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