Explore BrainMass
Share

finding the efficient level of abatement

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Given a table of info with level of abatement in percent, total cost in dollars, and total benefit in dollars how do you identitfy what the most efficient level of abatement is by general economic criteria?

with this data how do you perform the cost benefit test to tell if at a given percentage level abatement is effiecient?

if someone argues for abatement at 100% but that is not efficient - do you respond that it is not cost effective to society at that level? what is a better responce? please explain

© BrainMass Inc. brainmass.com October 16, 2018, 4:39 pm ad1c9bdddf
https://brainmass.com/economics/cost-benefit-analysis/finding-the-efficient-level-of-abatement-32694

Solution Preview

see attached excel spreadsheet. this sounds like natural resource and environmental economics. When dealing with environmental policy economists tend to think of things in terms of marginal costs and marginal benefits instead of supply and demand. Thing of quantity as quantity of abatement in percent terms and price as cost/benefit. You'll need to take your data which is total cost and total benefit and ...

Solution Summary

Finding the efficient level of abatement is determined.

$2.19
Similar Posting

Assume that scientific studies provide you with the following information concerning the benefits and costs of sulfur dioxide emissions

3. Assume that scientific studies provide you with the following information concerning the benefits and costs of sulfur dioxide emissions (E) which are measured in millions of tons.

MAC = 500 - 20 E
MD = 200 + 5E

(a) What is the socially efficient level of emissions abatement? Solve and graph in the space below.

(b) What are the marginal damages and marginal costs of abatement at the socially efficient level of abatement? Show your work below.

MD = MAC =

(c) What are the total net benefits to society at the optimal level of emissions abatement? Show your work below.

(d) What happens to the marginal damages, marginal abatement costs, and total net benefits if 1 million more tons are abated compared to (a)? Show your work.

MD = MAC =

Total Net Benefits =

(e) What happens to the marginal damages, marginal abatement costs, and total net benefits if 1 million fewer tons are abated compared to (a)? Show your work.

MD = MAC =

Total Net Benefits =

View Full Posting Details