Provide an example of an environmental tax

Reference no: EM13882799

1.Provide an example of an environmental tax or marketable permit instrument that has been used in Canada. Evaluate the instrument in terms of its efficiency (or cost-effectiveness), equity, enforceability, and incentives created for polluters to innovate.

2. Suppose the demand for a product is P = 100 - ½ Q and the supply of virgin inputs is 20 units. The marginal cost curve for recycled inputs is r = Q/4. Compute the socially efficient output level, the use of recycled inputs, and the efficient recycling ratio. Recompute all these under the following changes (take them one at a time) and compare them to the original case.

Demand falls to 80 - ½ Q

The MC curve for recycling inputs becomes r = Q/6

The supply curve for virgin inputs increases to 30.

Reference no: EM13882799

Questions Cloud

The effect of the law diminishing returns : Kelson Electronics a manufacturer of DVRs, estimates the following relation between its marginal cost of production and monthly output: MC=$150+0.005Q A. What does this function imply about the effect of the law diminishing returns on Kelsons short-r..

Initial fixed asset investment : Consider a four-year project with the following information: initial fixed asset investment = $450,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $26; variable costs = $16; fixed costs = $140,000; quantit..

Determine the cost of goods sold : 1.Causwell Company began 2013 with 10,000 units of inventory on hand.

What is coefficient of variation : Stock X has an expected return of 0.11. It has a beta estimated at 1, a risk-free rate of 0.03 and a risk premium of 6.1. Its variance of returns is 0.0209. All returns here are expressed as decimals, not percentages. What is its coefficient of varia..

Provide an example of an environmental tax : 1.Provide an example of an environmental tax or marketable permit instrument that has been used in Canada. Evaluate the instrument in terms of its efficiency (or cost-effectiveness), equity, enforceability, and incentives created for polluters to inn..

List the problems with the existing system at brock : List the problems with the existing system at Brock Identify the relevant information that the production and inventory managers need to accumulate in order to support the decision to automate the conversion process.

Discounted payback period if the required rate of return : A project has an initial cost of $8,700 and produces cash inflows of $2,600, $5,000, and $1,600 over the next three years, respectively. What is the discounted payback period if the required rate of return is 7 percent?

Explain the concept of incremental cash flow analysis : Explain the concept of incremental cash flow analysis and its purpose

Sample proportions distribution with normal distribution : About 74% of Freddie Mac-owned loans were refinanced in the second quarter of 2005 (USA Today, Lifeline, August 3, 2005), resulting in new mortgages carrying loan amounts at least 5% above the original mortgage balance. Determine if the sample size f..

User Account

All Pages