Exam_2_Review_3_Exam - Review Session Notes Least Cost...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Review Session Notes Least Cost Solutions to Abatement Under international climate control agreements, European nations have committed to reduce their carbon dioxide emissions. Suppose that Europe was divided into three regions, Northern Europe, Southern Europe, and the United Kingdom, and that each region had three technologies with which to abate. The marginal cost of abatement for each technology (and the number of pollution units abated) are indicated below for each region, In answering the questions below, assume that the regions can use all or part of their abatement unit at the specified marginal cost of abatement. Technology 1 Technology 2 Technology 3 Northern Europe $5 (20 units) $10 (25 units) $15 (10 units) Southern Europe $4 (15 units) $6 (20 units) $8 (25 units) United Kingdom $2 (10 units) $4 (10 units) $10 (10 units) a. Compare the total costs and the level of abatement for each region under a least cost abatement program of 75 units total for the three regions versus a uniform abatement program in which each region abates 25 units. Uniform: NE = $5*20 + $10*5
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

Exam_2_Review_3_Exam - Review Session Notes Least Cost...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online