Exam 12: Incentive-Based Strategies: Emission Charges and Subsidies

Refer to the Table above. What level of emissions would a firm choose given the marginal abatement cost and the subsidy level detailed above?

Refer to the Table above. The firm above faces an emissions charge of $100 per ton/month. At what level of emissions does the firm minimize total abatement cost?

Refer to the Table above. If the firm above faced an emissions charge of $150 per ton/month, at what level of emissions does the firm minimize total abatement cost?

Refer to the Figure above If this firm were to consider the difference between an emission tax of t* or an emissions standard of e*, what would the firm conclude is the monetary difference between the two programs?

When multiple firms are emitting, an emissions tax controls emissions in a way that

Refer to the Table above. The firm above faces an emissions charge of $100 per ton/month. If the firm chooses to emit 5 tons/month what is the firm's total cost?

Refer to the Figure above. If the firm above did not face emissions charges but instead, faced an emission standard of e*, abatement costs would be equal to ____________.

Refer to the Figure above. If the firm above faced an emissions charge of $ t* per ton/month and the firm is producing at the socially efficient level of emissions, what is the value of the total abatement cost?

Pollution taxes are transfer payments. This means

Refer to Table 1. If the firms above faced an emissions tax of $8, what level of total emissions would occur?

Refer to the Figure above. If the firm above faced an emissions charge of $ t* per ton/month, at what level does the firm reach a socially efficient solution for emissions?

Abatement subsidies can increase total emissions when

Refer to the Table above. If a regulatory agency simply mandated that the firm could emit a maximum of 5 tons/month and there were no emission charges, what would the firm's total abatement costs be?

Refer to Table 1. If the firms above faced an emissions tax of $12, what level of total emissions would occur?

Refer to the Figure above. If the firm above faced an emissions charge of $ t* per ton/month, what is the amount of taxation collected?

Emissions taxes lead to

Refer to the Figure above. A firm facing an emissions charge of t and an abatement cost curve of MAC₁ will emit e₁ and

There are two types of incentive based environmental policies

Which of the following is an example of a market based system for pollution control?

Which of the following are examples of deposit-refund systems?