Three firms emit pollutants and can abate at private quadratic cost.  A regulator wants to cut total emissions by 60\% of the sum of their baselines, and considers three instruments: a uniform standard, a per‐unit tax, and tradable permits.  This exercise compares the cost and allocation properties of each approach. The total cap is 40% of

The total cost under the uniform standard is  numerically equal to:

In the two firm environment described above, after trading, firm 1 will 

ISO14001 and LEED certification are examples of

Uniform standard equalizes:

The optimal tax in this model is called a:

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?