This paper concentrates on the primary theme of THE EQUATIONS FOR THE MARGINAL EMISSIONS DAMAGES AND MARGINAL EMISSIONS BENEFITS (MAC) OF AN… in which you have to explain and evaluate its intricate aspects in detail. In addition to this, this paper has been reviewed and purchased by most of the students hence; it has been rated 4.8 points on the scale of 5 points. Besides, the price of this paper starts from £ 40. For more details and full access to the paper, please refer to the site.
- The equations for the marginal emissions damages and marginal emissions benefits (MAC) of an industry are known and described by the following equations:
MED = and MEB = 175 – 5
Where E is pounds per year.
a. A tax is imposed on the industry to account for the environmental damages associated with production activities. What is the efficient tax rate?
b. Assuming the same tax as in part (a), what is the government revenue from the tax?