# There are two factories in a small town. Both of them emit carbon dio.pdf

There are two factories in a small town. Both of them emit carbon dioxide into the air. Factory 1 currently emits 120 tons per month, whereas factory 2 currently emits 160 tons per month. The technology of each factory is different, so their costs of reducing emissions are different as well. The tables below show the costs of reducing emissions in increments of 20 tons per month for each factory: Factory 1 Factory? The existing technology does not allow for reductions in emissions beyond 100 tons/month. That is, the most each factory could reduce its emissions by is 100 tons/month. 1st attempt Part 1 (1 point) See Hint Suppose the government in this town would like to cut monthly emissions to half of the current level. The lowest monthly cost to achieve such a reduction in emissions is \$ Suppose the government decides to issue transferable pollution permits to achieve its goal of reducing emissions. That is, the government issues permits that allow the holder of the permit to pollute 20 tons of emissions per month for each permit. A factory that holds a permit can rent the permit out to the other factory if it wants to. Suppose the government officials decide to give three pollution permits to factory 1 , and four pollution permits to factory 2 . We should expect that factory 2 will use pollution permits..

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### There are two factories in a small town. Both of them emit carbon dio.pdf

• 1. There are two factories in a small town. Both of them emit carbon dioxide into the air. Factory 1 currently emits 120 tons per month, whereas factory 2 currently emits 160 tons per month. The technology of each factory is different, so their costs of reducing emissions are different as well. The tables below show the costs of reducing emissions in increments of 20 tons per month for each factory: Factory 1 Factory? The existing technology does not allow for reductions in emissions beyond 100 tons/month. That is, the most each factory could reduce its emissions by is 100 tons/month. 1st attempt Part 1 (1 point) See Hint Suppose the government in this town would like to cut monthly emissions to half of the current level. The lowest monthly cost to achieve such a reduction in emissions is \$ Suppose the government decides to issue transferable pollution permits to achieve its goal of reducing emissions. That is, the government issues permits that allow the holder of the permit to pollute 20 tons of emissions per month for each permit. A factory that holds a permit can rent the permit out to the other factory if it wants to. Suppose the government officials decide to give three pollution permits to factory 1 , and four pollution permits to factory 2 . We should expect that factory 2 will use pollution permits.
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