Asked by Jordyn Orrison on Jul 09, 2024
Verified
Relating to the Economics in Practice on page 338: A number of agencies in the federal government, including the EPA, use the social cost of carbon as their internal carbon fee. In 2015, this price they were paying was ________ per ton of carbon.
A) $18
B) $39
C) $62
D) $100
Social Cost
The total cost to society, including both private costs borne by producers and external costs borne by others outside the production process.
Carbon Fee
A charge imposed on the carbon content of fossil fuels, aimed at reducing carbon dioxide emissions.
- Familiarize oneself with the theory of externalities and their role in impacting market efficiency.
Verified Answer
VF
Victoria FadakoJul 11, 2024
Final Answer :
B
Explanation :
In 2015, the social cost of carbon used by a number of agencies in the federal government, including the EPA, was $39 per ton of carbon. This figure is used to estimate the economic damages associated with an incremental increase in carbon emissions in a given year.
Learning Objectives
- Familiarize oneself with the theory of externalities and their role in impacting market efficiency.