Recycling paper creates more water pollution and does not save trees it simply

Recycling paper creates more water pollution and does

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Recycling paper creates more water pollution and does not “save” trees; it simply reduces the number that are planted.
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30 Regulatory Solutions Instead of using market forces to force firms to internalize externalities, we can use emission standards and apply these to all market players.
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31 Figure 3.10 Regulating Emissions: Losses in Efficiency From Differences in the Marginal Social Benefit of Emissions MSB MSB Q RB Q RA A B G H Q R MEC = MSC MEC = MSC 10 10 C F Q A * Q B * 0 Firm A Cost and Benefit (Dollars) Firm B Q B 1 Q A 1 Tons of Emissions per Year
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32 Figure 3.11 Losses in Efficiency From Emissions Standards When MEC Differs Among Regions MEC = MSC Q RD Q RC MEC = MSC 20 X Q C * T Q D * Firm C Tons of Emissions per Year Firm D Cost and Benefit (Dollars) MSB MSB S Y Z R Q R Q R
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33 Markets for Pollution Rights The Clean Air Act of 1990 allowed firms the right to trade Sulfur Dioxide emissions allowances. The market for the allowances began in 1991. Firms must have the allowances to emit Sulfur Dioxide. Firms increasing production can buy permits or use pollution controls to keep their total emissions constant. Firms that reduce their emissions can sell their allowances to others.
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34 Sulfur Dioxide Emission Prices
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35 Global Externalities CFC’s Deforestation Global Warming
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36 Costs and Benefits to the EPA The EPA estimates that annual compliance costs could be in the range of $225 billion per year. The EPA estimated in 1990 that the benefits of the Clean Air Act were nearly 50 times the costs. Ninety percent of the benefits are estimated to come from laws pertaining to power plants and factories.
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