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Unformatted text preview: that is offered on the clean farm? How does this change if the crop price is determined globally? 4. Use Figure 8.2. Make sure to use the correct diagram for Unproductive pollution (why is pollution unproductive here?). 6. The main characteristic for the car could just be the manufacturer reported fuel economy. Focus on the theory and estimation of hedonic pricing, p(z), p(z), and the MWTP. 7. If land is not a factor of production, then in Figure 8.2 we can just draw the firms cost curves as vertical lines since they only depend on wage (and pollution). Work through the three different cases for pollution (productive, unproductive, and neutral) and see how the new results differ from the results in the chapter....
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- Spring '10
- Environmental Economics