There are 4 ways of finding out how much people are WTP for improvements in environmental

quality. One of them is "Preventative or mitigation expenditure" method. If we consider a water

pollution, how would you use this method to measure the benefits from the water quality

improvement.

Question 2

Suppose there are two industries with MAC functions as follows:

MACA =1200-3EA and MACB=800-2EB

And suppose the local government wished to reduce the total industry emissions by 25% by

implementing a uniform standard. What is the level of emissions and TAC at each source under

the uniform standard?