Carefully explain how economic theory supports (i) the bubble policy and (ii) the emission allowance program for sulfur dioxide.

Question

Robert · Accepted Answer

Carefully explain how economic theory supports (i) the bubble policy and (ii) the emission 
allowance program for sulfur dioxide.
Bubble policy was launched by EPA in 1979. The key aim was to conceive to use in 
implementing the national standards for existing sources. The plants are allowed to measure the 
emission with the instrument not from all its release points but as an average of all such points.  
As per this bubble policy, the firm is allowed to combine the limits for different sources into one 
whole limit.  Compliance is determined based on that aggregate limit, not from each source 
individually. The name of the policy suggests as if an imaginary bubble is placed over the plant 
and emission level is set as an aggregate level.

Carefully explain how economic theory supports (i) the bubble policy and (ii) the emission allowance program for sulfur dioxide.

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment