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There are 400 rms in the same industry which each currently emit 8 Mt CO2 per year. The government imposes a cap and trade program
There are 400 rms in the same industry which each currently emit 8 Mt CO2 per year. The government imposes a cap and trade program for the industry, and sets the cap at 2000 Mt CO2 per year. Total abatement costs for each rm are TC = 2a2 where a is the volume abated by the rm. At what prices do allowances trade? Give your answer as a round number (no decimal places). Type your
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