3. The following table represents the business as usual (no abatement situation for emissions of greenhouse gases in millions of tonnes (Mt) and the marginal abatement cost equations for three fictitious regions that are planning to participate in a joint Climate Change Initiative. Region 1 Region 2 Region 3 Total E. (Mt) MAC (S/tonne) 3,000 MAC -0.2A, 2,000 MAC, 0.4A: 5.000 MAC = 0.1A 10,000 na [6] (a) Calculate abatement, TAC and TCC for each region and the group of regions as a whole if they decide to achieve their emissions reduction target using a standard that requires each region to reduce their total greenhouse gas emissions by 35 percent. [5] (b) Sup (b) Suppose that instead of a standard the Climate Change Initiative decided to introduce a carbon tax to achieve the same total abatement as part a). Solve for the tax rate that would result in the same reduction in total emissions. What will each region abate under this carbon tax? (c) Calculate TAC and TCC for each region and the group of regions as a whole under the carbon tax scheme. Present your results in a table. [3] (e) How would a grandfathered permit scheme that achieved the same total level of abatement compare in terms of TAC and TCC to the standard and the carbon tax scheme as described above? It is not necessary to do any calculations, just explain giving your reasoning about how this permit scheme would rank relative to the standard and the carbon tax in terms of TAC and TCC for all three regions combined. 3. The following table represents the business as usual (no abatement situation for emissions of greenhouse gases in millions of tonnes (Mt) and the marginal abatement cost equations for three fictitious regions that are planning to participate in a joint Climate Change Initiative. Region 1 Region 2 Region 3 Total E. (Mt) MAC (S/tonne) 3,000 MAC -0.2A, 2,000 MAC, 0.4A: 5.000 MAC = 0.1A 10,000 na [6] (a) Calculate abatement, TAC and TCC for each region and the group of regions as a whole if they decide to achieve their emissions reduction target using a standard that requires each region to reduce their total greenhouse gas emissions by 35 percent. [5] (b) Sup (b) Suppose that instead of a standard the Climate Change Initiative decided to introduce a carbon tax to achieve the same total abatement as part a). Solve for the tax rate that would result in the same reduction in total emissions. What will each region abate under this carbon tax? (c) Calculate TAC and TCC for each region and the group of regions as a whole under the carbon tax scheme. Present your results in a table. [3] (e) How would a grandfathered permit scheme that achieved the same total level of abatement compare in terms of TAC and TCC to the standard and the carbon tax scheme as described above? It is not necessary to do any calculations, just explain giving your reasoning about how this permit scheme would rank relative to the standard and the carbon tax in terms of TAC and TCC for all three regions combined