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Suppose there are three main stationary source NOx polluters in a jurisdiction in South Africa. This jurisdiction wants to reduce NOx emissions by 12,000 tons.
Suppose there are three main stationary source NOx polluters in a jurisdiction in South Africa. This jurisdiction wants to reduce NOx emissions by 12,000 tons. Each of the three polluting firms analyzes their abatement opportunities and find the following abatement functions denominated in rand, which is the South African currency: MAC1 = 1000 6A1 MAC2 = 4000 15A2 MAC3 = 3000 4A3 The jurisdiction in South Africa levies a tax on measured NOx emissions of RND 19,000 per ton, which is approximately $1000 per ton. With this tax rate, would the jurisdiction achieve its goal? Would the result be cost- effective
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