What is the total net benefit to all countries

Assignment Help Other Subject

Reference no: EM133490849

Question 1: Consider the case of greenhouse gas (GHG) sequestration (removal from the atmosphere) as a public good. Suppose there are 100 identical countries, each of which has an identical inverse demand function for carbon removal given by: P = 30 - 5 QD where Q p is the number of tons of GHGs removed from the atmosphere, and p is the marginal willingness to pay for removing carbon. Assume the marginal cost of sequestering GHGs is constant and $25 per ton. How many tons of GHs should be sequestered in order to maximize the total global surplus (achieve allocative efficiency)?

Question 2: What is the total net benefit to all countries of sequestering the optimal amount of GHGs? Absent cooperation, how much greenhouse gas sequestration would we expect to see (in equilibrium with free-riding)? Absent cooperation, what is the total net benefit to all countries from sequestration in equilibrium with free-riding?

Reference no: EM133490849

Questions Cloud

Identify any gaps in your existing skill set : Describe the skills you possess that make you an ideal candidate for your chosen career. Identify any gaps in your existing skill set that an employer

Rhythmaires in terms of repertoire-venues and pay : Describe J.W. Crowell and the Rhythmaires in terms of repertoire, venues, and pay. How did Rodney feel about what had happened?

Develop environment policy recommendations : What are the strengths and limitations of using estimates of total economic value to develop environment policy recommendations? How does your answer relate

How to share the data within the company and with the public : how to share the data within the company and with the public. Discuss technology's impact on data security and ethics in data analytics

What is the total net benefit to all countries : what is the total net benefit to all countries from sequestration in equilibrium with free-riding - How many tons of GHs should be sequestered in order

Described as the second reconstruction : The Civil Rights Movement is often described as the Second Reconstruction. What do you think is meant by this description,

Projections and critiques from before start of the crisis : Projections and critiques from before the start of the crisis, analysis and evaluations contemporaneous with the crisis, or post-crisis reviews and lookbacks

What is the best way to finish a research paper : Lessons learned with regards to your research paper in a minute - Your conclusion of what is the best way to finish a research paper in one session in a minute

What are the different kinds of storage devices available : What are the different kinds of storage devices available? How does one determine which to use? Identify the purposes and characteristics of power supplies.

User Account

All Pages