Voluntary Environmental Programs Were Extremely Popular in The United States

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Solved: Voluntary environmental programs were extremely

popular in the United States


Voluntary environmental programs were extremely popular in the United States

Voluntary environmental programs were extremely popular in the United States, Europe, and
Japan in the 1990s. Part of their popularity stems from the fact that these programs do not
require legislative authority, which is often hard to obtain.

The 33/50 program started by the Environmental Protection Agency (EPA) is an example of
such a program. With this program, the EPA attempted to reduce industrial emissions of 17
toxic chemicals by providing information on relatively inexpensive methods of pollution control.
Companies were asked to voluntarily commit to reducing emissions from their 1988 levels by
33% by 1992 and by 50% by 1995. The program actually met its second target by 1994.

a. As in Figure 16-3, draw marginal benefit curves for pollution generated by two plants, A and
B, in 1988. Assume that without government intervention, each plant emits the same amount of
pollution, but that at all levels of pollution less than this amount, plant A's marginal benefit of
polluting is less than that of plant B. Label the vertical axis "Marginal benefit to individual
polluter" and the horizontal axis "Quantity of pollution emissions." Mark the quantity of pollution
each plant produces without government action.

b. Do you expect the total quantity of pollution before the program was put in place to have
been less than or more than the optimal quantity of pollution? Why?

Voluntary environmental programs were extremely popular in the United States

ANSWER
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