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Chapter 12: Q.24 (page 297)

As the extent of environmental protection expands, would you expect the marginal benefits of environmental protection to rise or fall? Why or why not?

Short Answer

Expert verified

The value of marginal benefits will rise.

Step by step solution

01

Introduction

Environmental protection: Environmental protection is the process of safeguarding and conserving the natural environment.

Marginal cost: Additional costs incurred with the cost of producing an additional unit are referred to as marginal costs.

Marginal benefit: A marginal advantage is a benefit derived from the sale of one more unit of a product.

02

Explanation

Every country attempts to limit emissions from time to time by enacting environmental regulations. These regulations require businesses to contribute to the reduction of emissions in exchange for tax breaks and other government advantages. This has a favourable impact on society since people are breathing cleaner air, and they are consumers of things created by businesses, thus earnings will grow as well. Marginal benefits will rise, and marginal costs will fall.

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Most popular questions from this chapter

An emissions tax on a quantity of emissions from a firm is not a command-and-control approach to reducing pollution. Why?

What is command-and-control environmental regulation?

Refer to Table 12.2. The externality created by the refrigerator production was \(100. However, once we accounted for both the private and additional external costs, the market price increased by only \)50. If the external costs were \(100 why did the price only increase by \)50 when we accounted for all costs?

Consider two approaches to reducing emissions of CO2 into the environment from manufacturing industries in the United States. In the first approach, the U.S. government makes it a policy to use only predetermined technologies. In the second approach, the U.S. government determines which technologies are cleaner and subsidizes their use. Of the two approaches, which is the command-and-control policy?

From an economist's perspective, is it sound policy

to pursue a goal of zero pollution? Why or why not?
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