Microeconomics (Christopher T.S. Ragan) (z-lib.org)

intervene in private-sector markets if the outcome shown in Figure 17-2 is to be attained. The second problem is that the optima ...

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17.2 Pollution-Reduction Policies We examine three different types of policies designed to bring about the optimal amount of pol ...

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contamination they cause in the ground water. Similarly, the Canadian federal government gradually reduced the amount of lead al ...

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Figure 17-3 The Inefficiency of Direct Regulatory Controls In the terminology of Chapter 12 , direct regulatory controls are oft ...

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Requiring equal amounts of pollution abatement from different polluters is inefficient when the different polluters have differe ...

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firms is the given level of pollution abatement being achieved at the lowest possible cost. Direct regulatory controls are usual ...

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Figure 17-4 The Efficiency of Emissions Taxes Emissions Taxes An alternative method of pollution reduction is to levy a tax on e ...

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Emission taxes can lead to efficient pollution abatement. As in Figure 17-3 , Firm A faces a lower marginal cost of pollution ab ...

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The above analysis applies to any level of an emissions tax. But what is the level at which an emissions tax should be set to ac ...

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

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