The Australian Government is aiming to reduce Australia's single-use plastic waste (not recyclable) to 20% below 2010 plastic waste levels by 2050. Reforms A B C D Plastic waste change (compared to 2010 levels) by 2050. 30% increase No change 20% reduction 40% reduction Total cost for industries to introduce reform measures (billions of dollars) 0 0.3 1.2 1.5 One possible solution to reduce plastic waste would be to make the marginal private cost of plastic waste more closely reflect the marginal social cost. This would be achieved by the Government . Type T for increasing company Tax, P for increasing Personal tax, C for introducing a tax on plastic waste or B for Building more recycling stations. Imagine the Government decided to implement a system using market based instruments to price plastic pollution. Firms would have to buy the right to produce plastic waste that exceeded levels in 2010. What is the minimum total cost of introducing the instruments to reduce plastic waste to achieve the goal (in billions of dollars to one decimal place)? $ billion. If the Government decided to force firms to shut down if they exceeded their plastic pollution limits, would this be efficient? . Type Y for Yes or N for No.
Question
The Australian Government is aiming to reduce Australia's single-use plastic waste (not recyclable) to 20% below 2010 plastic waste levels by 2050.
Reforms
A
B
C
D
Plastic waste change (compared to 2010 levels) by 2050.
30% increase
No change
20% reduction
40% reduction
Total cost for industries to introduce reform measures (billions of dollars)
0
0.3
1.2
1.5
One possible solution to reduce plastic waste would be to make the marginal private cost of plastic waste more closely reflect the marginal social cost. This would be achieved by the Government . Type T for increasing company Tax, P for increasing Personal tax, C for introducing a tax on plastic waste or B for Building more recycling stations. Imagine the Government decided to implement a system using market based instruments to price plastic pollution. Firms would have to buy the right to produce plastic waste that exceeded levels in 2010. What is the minimum total cost of introducing the instruments to reduce plastic waste to achieve the goal (in billions of dollars to one decimal place)? $ billion. If the Government decided to force firms to shut down if they exceeded their plastic pollution limits, would this be efficient? . Type Y for Yes or N for No.
Solution 1
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Solution 2
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