Now consider permit trading with only firms 1 and 2:   Total cap =160 permits, allocated equally .  The required aggregate abatement is:

Suppose consumer increases their contribution  by one unit.  Which of the following terms in their utility function

What is the marginal damage at ?

What is the total premium if investors price both risks?

At

What is the expected heatwave premium for a risk‐neutral investor if the probability of a severe heatwave in a year is 3%?

The equimarginal principle states that in order to get the greatest reductions in _______ emissions for a given _________ abatement cost, all firms should emit at a point that offers the same marginal abatement cost for each firm.

Without warm glow (no term), would increase or decrease?

If 1% heatwave exposure raises yield by 0.20%, what is the change in yield, (

In the two firm environment described above,  after trading, firm 2 will