Microeconomics,, 16th Canadian Edition

emissions tax attaches a price to any amount of pollution and so firms have an ongoing financial incentive to innovate so as to ...

Tradable Pollution Permits: “Cap and Trade” The third general policy approach to pollution reduction is often referred to as a s ...

Figure 17-5 The Efficiency of a Cap-and-Trade System amount of emissions consistent with the same total amount of pollution abat ...

Note that at units of pollution abatement, the marginal costs for Firm B exceed the marginal costs for Firm A—pollution abatemen ...

Figure 17-6 The Market for Permits in a Cap-and-Trade System —the government-mandated “cap” on pollution. Let this amount be is ...

marginal benefit of abatement. As the price of the permit increases, each firm says to itself: “At a higher price for permits, p ...

Improvements in abatement technology will lead to a reduction in the demand for emissions permits and thus a reduction in their ...

services generates at least some pollution. In choosing how much pollution to allow, society must recognize the tradeoff between ...

Pricing Pollution The economic advantage of using emissions taxes or tradable emissions permits as opposed to direct controls is ...

17.3 The Challenge of Global Climate Change So far in this chapter we have discussed the general case of environmental externali ...

of global climate change presents a complex combination of economic, political, and scientific challenges. Greenhouse-Gas Emissi ...

atmospheric concentration is the stock associated with the accumulation of the past actual net flows of GHG emissions. In the mi ...

melting of the world’s glaciers, resulting in a loss of fresh-water supplies, especially in South Asia, China, and South America ...

the long run (albeit at a higher average temperature than today’s), the atmospheric concentration of greenhouse gases must also ...

The Case for Global Collective Action The emission of greenhouse gases is a negative externality. Many production and consumptio ...

When such negative externalities occur within a community, bylaws can be enacted by local government to alter individuals’ behav ...

Figure 17-7 Changes in Annual GHG Emissions, 1995–2014 The countries participating in the Kyoto Protocol agreed to an aggregate ...

There is considerable variation across countries in terms of the change in annual emissions of greenhouse gases since 1995. The ...

world’s largest emitters, including the United States, China, India, and Indonesia. In Durban, South Africa, in 2011, a UN-spons ...

Energy Use, GDP, and Greenhouse-Gas Emissions The data in Figure 17-7 suggest that it is not easy for a country to achieve signi ...