Question # 1: List and discuss a situation where emissions standards would be pr

Question

Question # 1: List and discuss a situation where emissions standards would be preferable to either pollution taxes or a system of transferable permits?

Question # 2: Explain how an economist would determine the optimal level of a pollution tax. What is the major uncertainty in using a pollution tax?

Question # 3: What are some particular problems with stock pollutants? Why might a reduction in emissions levels of a stock pollutant be insufficient in reducing the negative effects of the pollutant?

Explanation / Answer

Q1

Answer

Where Marginal cost of being on emissions standards is lower than taxes or permit cost. so the firm will prefere being on emissions standards than paying for permits or paying taxes.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects