Suppose the marginal costs of CO2 abatement in San Diego, California is MCA = 2A and the marginal damage from emissions is MBA = 80-2A.

A. (3 points) What is the level of abatement in the absence of regulation?

B. (5 points) What is the efficient level of abatement?

C. (3 points) Which area on the graph below corresponds to the welfare loss from unregulated emissions?

D. (5 points) At what level would you set a Pigouvian tax to achieve the efficient level of emissions?(Hint: the correct answer should be a specific number. )