1) There are two coal-fired power plants. They generate annually 10 and 20 billion kWh of electricity, respectively. Their SO2 emission rates are both 8 grams per kWh of electricity. Assuming that the only negative externaliw or environmental damage is, on global average, the loss of a statistical life for every 2,000 tons of SO2. The value of one statistical life is US$1 million. Then what is the monetary value of the environmental damage for one ton of the pollutant and one kWh of electricity? (3%) 2) The first and second coal-fired power plants are located in Perth and Hong Kong, respectively. Due to high population density, the environmental damage of SO2 emissions in Hong Kong is the loss of 2 statistical lives for every 1,000 tons of the pollutant, while that in Perth the loss is a statistical life for every 4,000 tons of 302. Assuming there are no transaction costs, the marginal abatement cost curve is: Marginal Abatement Cost (US$/ton) = Abatement (ton) X 0.2 (USS/tonz) If both cities want to apply an emission tax to achieve efcient pollution abatement, what should the tax rates (US$/ton 802) be for the two coal-fired power plants? (5%) What are their emission levels after the tax rates are applied? (5%) 3) The two coal-fired power plants also emit C02 at a rate of 1 kg C02 per kWh of electricity. If the marginal abatement costs of C02 is constantly $200/ton CO2 for the Hong Kong plant and $50/ton CO2 for the Perth plant. With the assumption of marginal damage being one statistical life for 10,000 tons of C02, what level should their emission tax rates be to achieve efciency? (3%) What are the emission levels of the two coal-fired power plants? (4%) | 4) If using an emission trading policy for mitigating C02 emissions, how many emission permits should be allocated for achieving efciency? (2%) If half of the emission permits are allocated to the Hong Kong supplier and the other half to the Paris supplier, how many permits will be traded? (3%) Please answer the fourth question only, thanks! I have nished other three questions