How can high-income countries benefit from

covering much of the cost of reducing pollution created

by low-income countries?

Short Answer

Expert verified

For future generations, high-income countries will benefit from increased biodiversity and a cleaner environment.

Step by step solution

01

Introduction

High income countries - The World Bank defines high-income nations as those with a GNP per capita of $9,266or more in 2000.

Low income countries - Low-income countries, according to the World Bank, are those with a per capita gross national income (GNI) of less than $1,026.

02

Explanation

Low-income countries must spend more on improving criteria such as health, education, industrial growth, and so on, therefore the pollution issue is overlooked because their primary focus is on economic development. High-income countries have already attained a minimal level of living, allowing them to develop while implementing pollution-control measures. Because global warming is an international issue that requires all nations to work together to address, if high-income countries financially assist low-income countries in implementing pollution control strategies, they will profit in terms of reduced pollution in the coming years.

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Most popular questions from this chapter

The state of Colorado requires oil and gas companies who use fracking techniques to return the land to its original condition after the oil and gas extractions. Table 12.9shows the total cost and total benefits (in dollars) of this policy.

Table12.9

Land Restored (in acres)Total CostTotal Benefit
0\(0\)0
100\(20\)140
200\(80\)240
300\(160\)320
400\(280\)380

(a) Calculate the marginal cost and the marginal benefit at each quantity (acre) of land restored. See Production, Costs and Industry Structure if you need a refresher on how to calculate marginal costs and benefits.

b. If we apply marginal analysis, what is the optimal amount of land to be restored?

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