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Why might a low-income nation with a currently very high degree of air cleanliness view a higher pollution level created by newly relocated plants of Chinese firms as optimal?

Short Answer

Expert verified

It is more economical that emissions to retain obtaining smaller systems or carbon pollution certificates.

Step by step solution

01

Introduction

Its pollution reduction stock market is a result of the increasing obtained first from intention emissions trading scheme permissions are necessary. That authority to consume anthracite is authorized more by overall carbon card. People are likely to partake in approach employs albeit less dangerous strategies to cut emissions when such a certificate are sold for one cheap rate.

02

Given Information

This should be emphasized that a polluting ticket can indeed be acquired for as little as $30, less than the cost in fueling a propane barrel for one truck581gigatons pollutants can be created for far less than $100in the Carbon Trading Platform.

03

Explanation

Nevertheless, for reduce emissions by such a large amount, investment in antipollution techniques will run around very few Hundreds of euros into billions of dollars. Thus soon as the price of a global carbon ticket drops significantly, it is more economical that emissions to retain obtaining smaller systems or carbon pollution certificates instead than prepping for air pollutant technology.

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Most popular questions from this chapter

A government agency caps aggregate emissions of an air pollutant within its borders, establishes initial pollution allowances across all firms, and grants the firms the right to trade these allowances among themselves. The demand and supply curves for these pollution allowances have normal shapes and intersect at a positive price. Explain in your own words the government's likely goal in establishing this private market for pollution allowances.

Explain why a society usually would not determine that a degree of 0 per cent air cleanliness is optimal.

The following table displays hypothetical annual total costs and total benefits of conserving wild tigers at several possible worldwide tiger population levels.

a. Calculate the marginal costs and benefits.

b. Given the data, what is the socially optimal world population of wild tigers?

c. Suppose that tiger farming is legalized and that this has the effect of reducing the marginal cost of tiger conservation by $15million for each 2,000-tiger population increment in the table. What is the new socially optimal population of wild tigers?

Explain how economists can conceptually determine the optimal quantity of pollution.

One possible method for reducing emissions of greenhouse gases such as carbon dioxide is to inject the gases into deep saltwater-laden rock formations, where they would be trapped for thousands of years. Suppose that the federal government provides a fixed per-unit subsidy to firms that utilize this technology in West Virginia and other locales where such rock formations are known to exist.

a. Consider the effects of the government subsidy on the production and sale of equipment that injects greenhouse gases into underground rock formations. What happens to the market clearing price of such pollution abatement equipment?

b. Who pays to achieve the results discussed in part (a)?

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