QUESTION 10 Plastic bags take up to 1000 years to decompose in landfills, and end up in oceans where they are highly hazardous to marine life. The Australian Government is aiming to reduce Australia's plastic waste to 20% below 2020 waste levels by 2030. Reforms A B с D Plastic waste change (compared to 2020 10% increase levels) by 2030. No change 20% 40% reduction Total cost for industries to introduce 0 reform measures (billions of dollars) 0.3 reduction 1.2 1.5 a. If the Government introduced a permit system, resulting in total industry permit costs being $700 million, and capital investment total costs of $500 million, what would be the expected 2030 waste levels compared to 2020 levels? Type LT for Less Than, E for Equal to, or GT = Greater Than. b. Consider the retail sector is responsible for 8% of Australia's overall industry plastic waste. The Government decides to introduce the reform option D (40% reduction). How much would it cost the retail sector (including both permit and capital investment) as a result of introducing this reform? Assume the cost is directly proportionally to all industries within the Australian economy. Answer to two decimal places in billions of dollars. $ billion. c. The Australian Government decides to meet their 2030 emissions goal by issuing permits to polluters. The permits will cost industries $900 million to buy the required number of permits. Industries need to spend an additional $300 million on improving (reforming) their operations and equipment to reduce their plastic waste under the permit system. What is the net cost to society as a result of the Government's approach? Answer to the nearest whole number in millions of dollars (with no decimal places). $ million.
QUESTION 10 Plastic bags take up to 1000 years to decompose in landfills, and end up in oceans where they are highly hazardous to marine life. The Australian Government is aiming to reduce Australia's plastic waste to 20% below 2020 waste levels by 2030. Reforms A B с D Plastic waste change (compared to 2020 10% increase levels) by 2030. No change 20% 40% reduction Total cost for industries to introduce 0 reform measures (billions of dollars) 0.3 reduction 1.2 1.5 a. If the Government introduced a permit system, resulting in total industry permit costs being $700 million, and capital investment total costs of $500 million, what would be the expected 2030 waste levels compared to 2020 levels? Type LT for Less Than, E for Equal to, or GT = Greater Than. b. Consider the retail sector is responsible for 8% of Australia's overall industry plastic waste. The Government decides to introduce the reform option D (40% reduction). How much would it cost the retail sector (including both permit and capital investment) as a result of introducing this reform? Assume the cost is directly proportionally to all industries within the Australian economy. Answer to two decimal places in billions of dollars. $ billion. c. The Australian Government decides to meet their 2030 emissions goal by issuing permits to polluters. The permits will cost industries $900 million to buy the required number of permits. Industries need to spend an additional $300 million on improving (reforming) their operations and equipment to reduce their plastic waste under the permit system. What is the net cost to society as a result of the Government's approach? Answer to the nearest whole number in millions of dollars (with no decimal places). $ million.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:QUESTION 10
Plastic bags take up to 1000 years to decompose in landfills, and end up in oceans where they are highly hazardous to marine life. The Australian Government is aiming
to reduce Australia's plastic waste to 20% below 2020 waste levels by 2030.
Reforms
A
B
с
D
Plastic waste change (compared to 2020 10% increase
levels) by 2030.
No change 20%
40% reduction
Total cost for industries to introduce 0
reform measures (billions of dollars)
0.3
reduction
1.2
1.5
a. If the Government introduced a permit system, resulting in total industry permit costs being $700 million, and capital investment total costs of $500 million, what would
be the expected 2030 waste levels compared to 2020 levels?
Type LT for Less Than, E for Equal to, or GT = Greater Than.
b. Consider the retail sector is responsible for 8% of Australia's overall industry plastic waste. The Government decides to introduce the reform option D (40%
reduction). How much would it cost the retail sector (including both permit and capital investment) as a result of introducing this reform? Assume the cost is directly
proportionally to all industries within the Australian economy. Answer to two decimal places in billions of dollars. $
billion.
c. The Australian Government decides to meet their 2030 emissions goal by issuing permits to polluters. The permits will cost industries $900 million to buy the required
number of permits. Industries need to spend an additional $300 million on improving (reforming) their operations and equipment to reduce their plastic waste under
the permit system. What is the net cost to society as a result of the Government's approach? Answer to the nearest whole number in millions of dollars (with no
decimal places). $
million.
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