Why is it that a carbon tax is preferred to a btu tax

Assignment Help Microeconomics
Reference no: EM13914737

a. Why is it that a carbon tax is preferred to either a Btu tax or a gasoline tax when the objective is to reduce carbon dioxide (CO2) emissions?

b. Instead of enacting a carbon tax, assume that Congress decides to provide tax incentives to non-carbon-based energy sources, such as solar and wind power. Would this instrument be cost-effective in reducing CO2 emissions?

c. Now suppose that the government chooses to initiate tax incentives (e.g., a tax credit) for these energy alternatives along with the carbon tax. Would this be a more socially optimal solution? Explain briefly.

Reference no: EM13914737

Questions Cloud

Find the efficient equilibrium, pe and qe for market : Find the dollar value of a per-unit gasoline tax that would achieve the efficient solution, and calculate the tax revenues generated to the gov- ernment as a result.
Identify channels for business communication : Identify channels for business communication was the most comfortable topic in week one's objectives. Obtaining a clear understanding of functions of communication, communication process, direction, and various choices of communication channels e..
Hormones would target the kidney : Which of the following hormones would target the kidneys? A.)TSH B.) HSH
Difference between conflict and competition : Conflict resolution is a necessary skill for any manager or leader. In this assignment, you will examine the difference between conflict and competition. You will also explore ways of determining when conflict resolution is necessary and explain w..
Why is it that a carbon tax is preferred to a btu tax : Instead of enacting a carbon tax, assume that Congress decides to provide tax incentives to non-carbon-based energy sources, such as solar and wind power. Would this instrument be cost-effective in reducing CO2 emissions?
About the managing a portfolio : You have been managing a $5 million portfolio that has a beta of 1.25 and a required rate of return of 14%. The current risk- free rate is 6%. Assume that you receive another $500,000. If you invest the money in a stock with a beta of 0.75, what will..
Lack of team work and compromise scenario : In dealing with the lack of team work and compromise in this scenario Jan, Sally, and Mark's management will have to make the compromise for them. It is obvious that Jan and Mark are being stubborn and trying to have their own way of things. Sal..
Case analysis-consumers take a shine to apple inc : Read the case and answer the following questions regarding the Apple case of the textbook. 1) How has Apple implemented the marketing concept?
Calculate the present value of the machine to patel : Calculate the present value of the machine to Patel. (Hint: Use Table 2 in Appendix C.) Does the purchase appear to be a smart busi- ness decision? Why?

Reviews

Write a Review

Microeconomics Questions & Answers

  Use graphical method and numerical method to find whether

each month the u.s. bureau of labor statistics publishes a variety of unemployment statistics including the number of

  Short-run average variable cost

If price is equal to short-run average variable cost, the firm is at the point known as the profit maximizing point.

  Budding economist buck measures

Suppose that budding economist Buck measures the inverse demand curve for toffee as P = $100 - QD, and the inverse supply curve as P = QS. Buck's economist friend Penny likes to measure everything in cents. She measures the inverse demand for t..

  Supply and demand schedules for e-books

The use of E-Books has increased in recent years, especially with the advent of mobile E-Readers. A marketing research firm recently developed the following supply and demand schedules for E-books:

  Which individual invests more in schooling

Assume there is an imperfect capital market. Draw a graph to show the optimal years of schooling for an individual with high access to funds but of low ability and an individual with low access to funds but with a higher ability level. Which ind..

  What were pros that could be found in organizational shift

In which way could standardization compromise the internal creativity? What were the pros and cons that could be found in the organizational shift from matrix to functional lines?

  Why has it been significant for perry ellis international

chris kolbe is a master of change. now president of orig-inal penguin kolbe essentially runs the division for its

  A monopolist''s inverse demand function is p

A monopolist's inverse demand function is P = 150 - 3Q. The company produces output at two facilities; the marginal cost of producing at facility 1 is MC1(Q1) = 6Q1, and the marginal cost of producing at facility 2 is MC2(Q2) = 2Q2.

  The dual banking system in the US. today refers

The dual banking system in the U.S. today refers to: Most economists agree that the target rate of inflation for the central banks should be: One argument for an independent central bank is: Comparing the European and the U.S. central bank syatems, t..

  What is first seasonal difference value of the data series

Which is the appropriate ARIMA menu for the model given the non seasonal and seasonal menu form - What is the first seasonal difference value of the data series?

  What factors could cause the monopolies to end

Can both monopolies continue endlessly? Why or why not for each example and what factors could cause the monopolies to end?

  Assume you describe the concept of the inflation tax to a

write a 700-1000 word paper in which you address the questions below. also do your best to format your work

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd