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The columns in the table correspond to 6 different policy scenarios, listed below. The rows of the columns ask for specific results. These include: Amount
The columns in the table correspond to 6 different policy scenarios, listed below. The rows of the columns ask for specific results. These include: Amount abated = the total number of units of pollution abated in the market Total abatement cost = total cost for abatement across all firms, do not include taxes paid, or money spent on permits Average cost per unit = total abatement cost divided by units abated, this summarizes the efficiency of the abatement Payments to government = amount firms paid to government in the form of a tax or in an auction to buy permits 4 Government revenue = how much revenue collected by the government from these firms (This is here to emphasize that tax or auction payments are a transfer and thus not a net cost to society.) Total cost to society of the scheme = total abatement cost payments to government - government revenue Equilibrium permit price - In scenario A, every firm is required to abate 2 units of emissions. No taxes are paid. - In scenario B, every firm is required to abate 7 units of emissions. No taxes are paid. - In
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