New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

Week 2 Notes

by: Lori Holte
Lori Holte
Virginia Tech

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

These notes include what was on exam 1.
Class Notes
25 ?




Popular in Macrroeconomics

Popular in Department

This 3 page Class Notes was uploaded by Lori Holte on Saturday October 15, 2016. The Class Notes belongs to at Virginia Polytechnic Institute and State University taught by in Fall 2016. Since its upload, it has received 3 views.


Reviews for Week 2 Notes


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 10/15/16
8/29/16  Concept of optimality;  Most cost curves are U-shaped (economics of scale)  Externality= some of the benefits or costs are imposed on an innocent 3 party o Solution: internalize (get producer to pass on the true costs to consumer)  Sum of margins= TOTAL  Major issue in economics: value of human life 8/31/16  Constantly seeking out optimality in life  Most cost-effective way is to have some prevention and some cleanup 9/2/16  Burn coal: machine to capture gases before they hit atmosphere  There is an optimal level of pollution in the environment  Clean Air Act – major environmental law; renewal 1990: senators and congressmen listened to an economist offer suggestions o Financial incentive to increase green activity o Market will allocate more environmentally friendly practices  Pollution permits: o SO2 permits: each one entitles owner to emit 1 ton SO2 per year o At the end of the year each coal-burning utility plant must have purchased at least as many permits as tons of SO2 emitted that year o Fine: $2,000 per ton over + that many tons (over) deducted from its allowance the next year o No cheating: EMU – Emissions Monitoring Unit (99.99% accuracy) – connected to EPA o Permits are transferrable/ marketable during the year (plants can sell to each other – surplus vs shortage) o Bankable for next year o Anyone can buy permits (not just utility plants)  NAAQS – National Ambient Air Quality Standards  Airsheds: something goes into air – where it goes  In each NAAQS: medical scientific advisory board that sets annual limit of tons of SO2 emitted into atmosphere (optimal #) o SO2 – respiratory pulmonary problems, skin diseases, etc  Ex) 40,000 split between 4 plants: o 10,000 each – communists (Mike) o Let them compete for permits o If the most efficient and greenest plant bought all permits, then older plants could upgrade and just not pollute o Efficient plant could raise price of permits to sell incentive for upgrades  Utility plant could sell fly ash for other uses – artificial fishing reefs  * every 5 years, medical scientific board comes together and creates new plan: o Adjust # of permits – sell fewer o If price of permits goes up, cost of electricity goes up o Electric bills go up  use less power/ conserve electricity o Cleaner alternative fuel


Buy Material

Are you sure you want to buy this material for

25 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."

Janice Dongeun University of Washington

"I used the money I made selling my notes & study guides to pay for spring break in Olympia, Washington...which was Sweet!"

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."


"Their 'Elite Notetakers' are making over $1,200/month in sales by creating high quality content that helps their classmates in a time of need."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.