The graph above represents a bilateral transboundary pollutant and the economics of reaching an agreement between two countries, Country…

The graph above represents a bilateral transboundary pollutant and the economics of reaching an agreement between two countries, Country…

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The graph above represents a bilateral transboundary pollutant and the economics of reaching an agreement between two
countries, Country A and Country B. MD+ represents total damages of A and B. Answer the following discussion questions:
1. Question 1: How could one interpret the amount calculated by (MDT-MDA)?
2. Question 2: In your opinion, what point would Country A regard as efficient level of emissions without regard to the
externalities it produces in Country B? Explain your answer.
3.
Question 3: In your opinion, what point would Country A regard as efficient level of emissions with regard to the
externalities it produces in Country B?
4. Question 4: How would you find the added abatement costs for Country A to consider damages it causes in Country B
and produce at the globally efficient level of emissions?
5. Question 5: How could you assess the total reduction in damages when Country A considers damages it causes in
Country B and produces at the globally efficient level of emissions?
6.
Question 6: What is the total reduction in damages accruing directly to Country A when it considers the damages it
causes in Country B and produces at the globally efficient level of emissions? GA
MACA
a
b
ez e,
Emissions of Country A
MD₁
MDA

Expert Answer:

Answer rating: 100% (QA)

Question 1 The amount calculated by MDT MDA represents the damages experienced by a second party Cou
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