Plants A and B emit 12 tons and 6 tons of carbon dioxide (CO2), respectively. MAC(marginal abatement costs) for a = 12 - Ea, MACb=12-2Eb MD(marginal damage) = 1/3*E (E indicates CO2 emission) Suppose that the emission trading system is introduced and the right to emit 7 tons is given to power plant A and the right to emit 5 tons is given to power plant B. In order for emission permits to be traded, the price of one unit of emission permits must be at least a certain amount (minimum price) and conversely, how much must be less than a maximum (maximum price), that is, explain the fluctuation range of the emission permit price.

Suppose that a firm's marginal abatement cost function with existing technologies is MAC = 12 - E. If the firm adopts new pollution abatement technologies, then its marginal abatement cost function will become MAC = 6 - 0.5E. With an emissions tax of $3, the benefits of adopting the new technologies equal $__. Please round your final answer to two decimal places if necessary. Answer:

A couple of years ago, a global carbon tax seemed far from becoming a reality. However, the introduction of a such a tax now appears to be a possible and viable new instrument for mitigating climate change. The idea has been advocated by heads of international organizations, businesses and professional services firms (including PwC) and lobbyist for big companies (including the Business Council of Australia). Suppose that governments worldwide were to agree to implement a minimum carbon tax of 75 US dollars per tonne of C02 emissions. Further, suppose that you are the CEO of a manufacturer of affordable casual clothing. From this perspective, answer the following questions: Based on the article by Dr Alice Pirlot, explain how you would expect a global carbon tax to change the current laws and regulations that affect your business under the existing international legal framework. Suppose that your shareholders are only concerned with maximising the profits of your business, given the…

Suppose there are three polluting sources with MAC1 = 100 - 4E, MAC2 = 80 - 2E and MAC3 = 60 - 0.5E. When MAC equals $10, the aggregate level of abatement for these sources would be _______.

Describe the key symmetry between a pollution emissions tax and an emissions trading scheme. Outline some reasons you might wish to choose one approach in favour of the other when dealing with an emissions-reduction problem.

Following are some illustrative numbers for benefits and costs arising from a program to restrict emissions of a pollution. Current emissions are 10 tons per month. Identify the emission level at which net benefit would be maximized. Show that this is not the same as the emission level that gives the highest benefit-cost ratio. Explain the discrepancy.   Emissions (tons/month) 10.     9.    8.    7.    6.     5.     4.    3.    2.    1.    0.             Benefits ($ million) 0.    4.    8.    18.    32.    44.    54.    62.    68.    72.    74.       Costs ($ million) 0.    2.    4.    6.    9.    14.    21.    36.    48.    64.    86.

Marginal Damages of Pollution: MD = 40 Marginal Abatement Cost: MAC = 100 -2Q e. Calculate and compare the change in welfare for Mr. Peabody's coal plant under the efficient tax and efficient subsidy (i.e. the difference in the plant's welfare under a tax (subsidy) compared to no policy at all).

Suppose the marginal benefit (MB) and marginal cost (MC) curves for emitting particulate matter are given by the following schedules, where E is the quantity of emissions per period. The marginal benefits and costs are measured at the quantities of emissions shown. E/Period MB ($ MC ($) 0 230 0 200 190 10 400 150 30 600 110 50 800 70 70 1000 30 90 Use the information above to calculate the tax rate that would achieve the efficient rate of emissions. Efficient Tax Rate =$__ per unit of pollution

Suppose that a firm's marginal abatement cost function with existing technologies is MAC = 12  - E. If the firm adopts new pollution abatement technologies, then its marginal abatement cost function will become MAC = 6  - 0.5E. With an emissions tax of $4, the benefits of adopting the new technologies equal $____. Please round your final answer to two decimal places if necessary. THE ANSWER IS NOT 16  Maybe 4?

The supply and demand of sugar are given as           Qs = 5P,  Qd = 250- P   where Qs is tons supplied per year, P is the price per ton; Qd is tons demanded per year. Because of the pollution associated with production, marginal external costs of 40 are associated with each ton of sugar.  Assuming that sugar is sold in a competitive market,   What is the market price? How many tons of paper will be produced per year at that price? What is the efficient output of paper? What is the amount of total Pigouvian tax to achieve efficiency? What is the amount of total Pigouvian subsidy to achieve efficiency?