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As a test case, City A has decided to pursue regulatory approaches to controlling CO2 in B town, where CO2 emissions primarily come from local...

As a test case, CIty A has decided to pursue regulatory approaches to controlling CO2 in B town, where CO2 emissions primarily come from local electricity generation. There are three power plants in B, and each has submitted their estimated abatement costs for CO2.

Plant 1: Gas Plant releasing 2,400,000 tons of CO2/year
Abatement Approach Tons Removed/Year Cost per Ton
Carbon Sequestation 30,000 $20
Heat Rate Improvement 1,200,000 $50
Efficiency Improve ment 95,000 $70
Increase in lower emitting capacity 2,500 $190

Plant 2: Gas Plant releasing 90,000 tons of CO2/year
Abatement Approach Tons Removed/year Cost Per Ton
Efficiency Improvement 18,000 $35
Carbon Sequestrain 12,000 $45
Fuel switching/construction of wind Capacity 40,000 $130


Plant 3: Coal Plant releasing 2,740,000 tons of CO2/year
Abatement Approach Tons Removed/Year Cost Per Ton
Carbon Sequestration 26,000 $30
Efficiency Improvements 70,000 $60
Fuel Switching 190,000 $85
Waste Heat Recovery 540,000 $140

A wants to reduce CO2 emissions by 1,569,000 tons per year (approximately a 30% reduction). They are looking at alternative approaches to achieving this goal, and are interested in comparing the costs of command-and-control to the least-cost solution to achieving this abatement level.

a) Command-and-control: Each plant must reduce their annual CO2 emissions by 30%. Please complete the following table.
Plant1 Plant2 Plant3 Total
Eliminated Emissions(tons)
Remaining emissions (tons)
Total cost of abatement

b) Least-Cost solution: What is the least cost at which the 30% abatement level could be achieved? Complete the following table to indicate how much each plant would abate and the costs of this abatement using least-cost methods.



c) What policies might you recommend to arrive at the least-cost solution? What are some of the pros and cons of each?
As a test case, City A has decided to pursue regulatory approaches to controlling CO 2 in B town, where CO 2 emissions primarily come from local electricity generation. There are three power plants in B town, and each has submitted their estimated abatement costs for CO 2 . Plant 1: Gas Plant releasing 2,400,000 tons of CO2/year Abatement Approach Tons Removed/Year Cost per Ton Carbon Sequestation 30,000 $20 Heat Rate Improvement 1,200,000 $50 Efficiency Improve ment 95,000 $70 Increase in lower emitting capacity 2,500 $190 Plant 2: Gas Plant releasing 90,000 tons of CO 2 /year Abatement Approach Tons Removed/year Cost Per Ton Efficiency Improvement 18,000 $35 Carbon Sequestrain 12,000 $45 Fuel switching/construction of wind Capacity 40,000 $130 Plant 3: Coal Plant releasing 2,740,000 tons of CO 2 /year Abatement Approach Tons Removed/Year Cost Per Ton Carbon Sequestration 26,000 $30 Efficiency Improvements 70,000 $60 Fuel Switching 190,000 $85 Waste Heat Recovery 540,000 $140 B wants to reduce CO 2 emissions by 1,569,000 tons per year (approximately a 30% reduction). They are looking at alternative approaches to achieving this goal, and are interested in comparing the costs of command-and-control to the least-cost solution to achieving this abatement level. a) Command-and-control: Each plant must reduce their annual CO 2 emissions by 30%. Please complete the following table. Plant1 Plant2 Plant3 Total Eliminated Emissions(tons) Remaining emissions (tons) Total cost of abatement b) Least-Cost solution: What is the least cost at which the 30% abatement level could be achieved? Complete the following table to indicate how much each plant would abate and the costs of this abatement using least-cost methods.
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c) What policies might you recommend to arrive at the least-cost solution? What are some of the pros and cons of each?
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As a test case, City A has decided to pursue regulatory approaches to controlling CO2
in B town, where CO2 emissions primarily come from local electricity generation.
There are three power plants...

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