microecon Unit 4 IP - Microeconomics Unit 4 Individual...

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Microeconomics Unit 4 Individual Project 1 Microeconomics Unit 4 Individual Project Warren Synecky ECON220-1002B-13 May 22nd, 2010
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Microeconomics Unit 4 Individual Project 2 One policy that could be implemented is incentives for the plant to reduce emissions. If the plant were to receive a tax break, or other incentives, it may be more willing to make changes to the amount of emissions the plant produces. This would cause the plant to have to invest money in making the changes necessary for the plant to emit fewer pollutants, thus causing the price for power to rise for the customer. Hopefully this rise in price is only temporary as once the plant pays for the changes and starts receiving the tax break, they would lower the price for power. The benefit for the plant for making this change is obviously the added money they receive from the tax credit. One external benefit to this plan is that it sets the precedent for other companies that emit a large amount of pollutants. More companies would make the changes if they were compensated for the time and money they will need to invest. Another benefit is the
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microecon Unit 4 IP - Microeconomics Unit 4 Individual...

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