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

Take a look at Figure 31-2. Suppose that initially, society experiences a degree of air cleanliness that is lower than Q0. What would be true of the marginal benefit in relation to the marginal cost, and why would this fact induce society to increase the degree of air cleanliness toward Q0?

The market price of insecticide is initially \(10 per unit. To address a negative externality in this market, the government decides to charge producers of insecticide for the privilege of polluting during the production process. A fee that fully takes into account the social costs of pollution is determined, and once it is put into effect, the market supply curve for insecticide shifts upward by \)4 per unit. The market price of insecticide also increases, to $12 per unit. What fee is the government charging insecticide manufacturers?

Who ultimately pays to address costs of negative externalities created by government agencies such as the EPA when they accidentally release pollutants into the environment?

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?

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