Homework_6a_Problem_Set - AEM 250, Environmental and...

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AEM 250, Environmental and Resource Economics, Fall 2008 Homework #6: Pollution Policies (Distributed Nov. 7, due in red box by 9:30 a.m. Nov. 14, 2008) 10 Points. All graphs should be clearly labeled and all other work legible. If we are unable to interpret your work, you will receive a lower score. 1. ( worth 20 percent ) You are an EPA economist. After extensive research, you have estimated the marginal benefit curves reported below for two categories of “air quality consumers”, with respect to sulfur emissions reductions as: MB 1 = $1.5 - .0075A MB 2 = $0.5 - .0025A A denotes the amount of sulfur emissions reduction (abatement). Assume there are only two point sources of sulfur dioxide to worry about: the power company and the copper smelter indicated below and discussed in class. Source: Chapman 2000, p. 204. 15
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What is the optimal level of emissions reduction in the region? What is the optimal level of pollution from each of these two point sources? Use the following Minimum Marginal Pollution Control Cost
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This homework help was uploaded on 02/01/2009 for the course AEM 2500 taught by Professor Poe,g. during the Fall '07 term at Cornell University (Engineering School).

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Homework_6a_Problem_Set - AEM 250, Environmental and...

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