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Chapter 12: Q.33 (page 297)

Is zero pollution possible under a marketable permits system? Why or why not?

Short Answer

Expert verified

Yes, it's possible.

Step by step solution

01

Introduction

Marketable permits are the programs under which military issue certain permits allowing only a particular quantity of pollution. they will be bought and sold.

02

Explanation

Zero pollution is feasible but are expensive. Cap and trade system applies here. Credits are going to be given to firms who cleans up the environment. Suppose there's plant firm a slow down the trees and has got to grow new ones. rather than growing itself, firmb is planting the trees on a's behalf and taking the expense. So during this way mutually the good thing about one is offset by ill action of other. And total impact on environment is zero.

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Most popular questions from this chapter

Table 12.5 provides the supply and demand conditions for a manufacturing firm. The third column represents a supply curve without accounting for the social cost of pollution. The fourth column represents the supply curve when the firm is required to account for the social cost of pollution. Identify the equilibrium before the social cost of production is included and after the social cost of production is included.

Can extreme levels of pollution hurt the economic

development of a high-income country? Why or why

not?

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

Show the market for cigarettes in equilibrium,

assuming that there are no laws banning smoking in

public. Label the equilibrium private market price and

quantity as Pm and Qm. Add whatever is needed to the

model to show the impact of the negative externality

from second-hand smoking. (Hint: In this case it is the

consumers, not the sellers, who are creating the negative

externality.) Label the social optimal output and price as

Pe and Qe. On the graph, shade in the deadweight loss at

the market output.

In the tradeoff between economic output and environmental protection, what do the combinations on the protection possibility curve represent?
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