Make the trade profitable to both parties

Reference no: EM13781086

The Clean Air Act instituted trades between states for SO2 emissions. Several utility companies across geographic borders have engaged in such trades in recent years.

Consider a trade between a utility in Wisconsin and the TVA in Tennessee. Assume that the trade reduces Wisconsin electricity consumers' bills by a total of $ 1 million, and lowers Tennessee electricity consumers' bills by $ 500,000. Also assume that the trade improves local environmental quality in Wisconsin by an amount that people value at $ 2 million.

If the local environmental quality in Tennessee declines as a result of this trade, then indicate a potential Coase agreement that could avoid the environmental decline and would still make the trade profitable to both parties ? Is such a trade possible in this scenario?

Reference no: EM13781086

Questions Cloud

Write short notes on erd and database file : This course utilizes the Virtual Organizations, an Apollo Group, Inc. learning tool. The Virtual Organizations portal is accessed from the link on your course materials page.

Psychologists define personality : Researchers use a number of different methods to study personality. Three of the most commonly used methods are case studies, correlational designs, and experimental designs or true experime

Define the web-based risks that led to the attack : Describe the virus and how it propagated itself onto servers over the Web based on the actual information provided. Assess the Web-based risks that led to the attack.

Position person holds in company and their political power : What is the difference between the position a person holds in a company and their political power? Is the top executive in an organization always the person who holds the most political power? Explain your answer. 250 words

Make the trade profitable to both parties : If the local environmental quality in Tennessee declines as a result of this trade, then indicate a potential Coase agreement that could avoid the environmental decline and would still make the trade profitable to both parties ? Is such a trade po..

Knowledge of dna improved the study of criminal forensics : Question: How has our knowledge of DNA improved the study of criminal forensics?

What data and methods did addington use : In this written assignment, you will further examine the use of NIBRS data in criminal justice research. In your own words, what data and methods did Addington use

Write paper on story where are you going where have you been : Write a two to three page response to Joyce Carol Oates' short story, "Where Are You Going, Where Have You Been?". You may research the story a bit.

Time value of money are saving for the college education : Time Value of Money You are saving for the college education of your two children. They are two years apart in age, one will begin college 15 years from today and the other will begin 17 years from today. You estimate your children's college expenses..

User Account

All Pages