Carbon tax response
Emissions cost is estimated $80/ton. Firm A can abate for $30, B for $70, C for $120.
- An $80 tax induces abatement when marginal cost is below tax.
- Apply the method to this new case and check the strongest alternative.
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PRACTICE MISSIONpublic goods, externalities, information, and regulation
public goods, externalities, information, and regulation
Who is expected to abate?
MODELHidden Cost Ledger
POLICY
PROVEChoose with evidence
CLUE
Pause. Find what matters. Then make your move.