One action that a government could take to reduce carbon emission into the atmos

Question

One action that a government could take to reduce carbon emission into the atmosphere is to place a tax on fossil fuels. This tax would be based on the amount of carbon dioxide that is emitted into the air when such a fuel is burned. The cost-benefit equation In (1 - P) = - 0.0028 - 0.0058T describes the approximate relationship between a tax of T dollars per ton of carbon dioxide and the corresponding percent reduction P (in decimals) in emissions of carbon dioxide. (a) Determine the percent reduction in carbon dioxide when the tax is $60. (b) What tax will cause a 50% reduction in carbon dioxide emissions? (a) The percent reduction in carbon dioxide when the tax is $60 is %. (Type an integer or decimal rounded to the nearest tenth as needed.)

Explanation / Answer

ln ( 1-p) = - 0.0028-0.0058T

a) when T= 60

ln(1-p) = -0.0028 - 60*0.0058=  -0.3508

1- p = exp( -0.3508) =  0.7041

p=0.2959 = 29.59%

b)

if p= 0.5

ln( 1-0.5)= - 0.0028-0.0058T

-0.6931 =   - 0.0028-0.0058T

T= 119.02

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.