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

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

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

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

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

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

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

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

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

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

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

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