Question

1. A regulation was applied to reduce SO2 on national level. The researchers evaluated MCO and MDC functions for the pollutant: MCC 60-4E, MDC-2E Determine socially efficient level of pollution and graphically illustrate it a. Emissions MCC, S MDC, S 4 10 12 14 15 b. Suppose that no emissions are controlled and 15 tonnes per month are emitted into the air i. Compute total damage (TDC) at 15 tonnes per month ii. Compute total control cost (TCC) at 15 tonnes of output iii. Compute total social cost c. Compute: i. TDC, TCC and total social cost for the socially efficient level of pollution ii. Compare (TDCe, TCCe) with those calculated for zero pollution control. Find value, the society saves due to reduction of emissions

Answer 1