Draw a diagram which illustrates in economic terms how a carbon fee and dividend policy - a type of carbon tax on the sale of fossil fuels where the revenue from this tax is distributed regularly to a nation's population - would effect carbon emissions. 2. Referring back to the diagram you drew, how would a carbon dividends plan help reduce the efficiency loss from carbon emissions?
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1. Draw a diagram which illustrates in economic terms how a carbon fee and dividend policy - a type of carbon tax on the sale of fossil fuels where the revenue from this tax is distributed regularly to a nation's population - would effect carbon emissions.
2. Referring back to the diagram you drew, how would a carbon dividends plan help reduce the efficiency loss from carbon emissions?
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- Chapter 8 in Tietenberg and Lewis looks at climate change, the most important environmental issue of our time. Economists generally agree that putting a price on carbon is the best approach to reducing climate warming carbon emissions. The two main strategies for doing this are carbon taxes and the cap and trade version of emissions trading. Discuss the pros and cons to these two approaches to pricing carbon. Why do economists favor these kinds of market-based strategies to pollution control over “command and control” approaches such technology standards?In the graph below, circle the efficient level of emissions.1. What is an example of a good that has become a public (or quasi-public) good due to technology? 2. Explain how technology has made this good non-rival in consumption or non-excludable. 3. Is there a free rider problem in the good you mentioned? How can the free rider problem be addressed in that example?
- 2. Last year, nearly 200 countries agreed on a plan to limit greenhouse gas emissions, in an effort to limit climate change. One of the challenges in creating such a plan is that climate change is a global phenomenon, depending on total emissions from all countries. Which of the following best describes the benefits of a plan that reduces global warming? a. It's a common pool resource; countries will tend to contribute too much to global warming efforts b. It's a public good; countries will tend to contribute too much to global warming efforts C. It's a common pool resource; countries will tend to contribute too little to global warming efforts d. It's a public good; countries will tend to contribute too little to global warming efforts e. None of the above2. Suppose MAC = 40 - 2E and MD = 2E. Draw a graph to show and calculate the following: a) What are the efficient level of emissions e*, total damages TD, total abatement cost TAC, and total social costs related to emissions? b) If there is no pollution control, what is the total social costs related to emissions. How much of costs can be saved by moving to e*? c) What are the total social costs related to zero emissions? How much of costs can be saved by moving to e*? d) If the actual emission level is 15, what are the total damages, total abatement cost, and total social costs related to emissions? Compared with the efficient level, what is the deadweight loss (in terms of too high total social cost)?Rewrite this text; The Ultra Low Emission Zone (ULEZ) is a policy implemented in certain areas to reduce air pollution by charging vehicles that do not meet specific emission standards. To provide a summary of the main changes brought in by ULEZ, I will refer to the information from the BBC News article and the research briefing from the UK Parliament's Commons Library.According to the BBC News article, the ULEZ policy was introduced in London in April 2019 and expanded in October 2021. The main change brought by ULEZ is the requirement for vehicles entering the zone to meet strict emission standards. Petrol vehicles must meet Euro 4 standards, while diesel vehicles must meet Euro 6 standards. Non-compliant vehicles are subject to a daily charge. The ULEZ policy aims to improve air quality and reduce harmful emissions, particularly nitrogen dioxide and particulate matter.One potential benefit expected to arise from the introduction of ULEZ is the improvement in air quality. The…
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