Docsity
Log inSign up
Docsity
Prepare for your exams
Prepare for your exams

Study with the several resources on Docsity

Earn points to download
Earn points to download

Earn points by helping other students or get them with a premium plan

Guidelines and tips
Guidelines and tips
Sell on Docsity
Sell on Docsity
Log inSign up

Prepare for your exams

Study with the several resources on Docsity

Find documents

Prepare for your exams with the study notes shared by other students like you on Docsity

Search Store documents

The best documents sold by students who completed their studies

Search through all study resources
Docsity AINEW

Summarize your documents, ask them questions, convert them into quizzes and concept maps

Explore questions

Clear up your doubts by reading the answers to questions asked by your fellow students

Earn points to download

Earn points by helping other students or get them with a premium plan

Share documents
download point icon20 Points

For each uploaded document

Answer questions
download point icon5 Points

For each given answer (max 1 per day)

All the ways to get free points
Get points immediately

Choose a premium plan with all the points you need

Study Opportunities

Choose your next study program

Get in touch with the best universities in the world. Search through thousands of universities and official partners

Community

Ask the community

Ask the community for help and clear up your study doubts

University Rankings

Discover the best universities in your country according to Docsity users

Free resources

Our save-the-student-ebooks!

Download our free guides on studying techniques, anxiety management strategies, and thesis advice from Docsity tutors

From our blog

Exams and Study
Go to the blog

Review of the Three Way User Cost drops into the Time | ECON 462, Study notes of Economics

Central Washington University (CWU)Economics

Material Type: Notes; Class: Economics of Energy, Resources and Environment; Subject: Economics; University: Central Washington University; Term: Fall 2005;

Typology: Study notes

Pre 2010

Uploaded on 08/18/2009

koofers-user-vl4
koofers-user-vl4 🇺🇸

10 documents

1 / 4

Toggle sidebar

This page cannot be seen from the preview

Don't miss anything!

bg1
MUC
SR
Q1
Q1
NMB1
NMB2
Nikishna Myron
10/31/05
ECON 462
Notes 7.1
HOMEWORK REVIEW
Three ways User Cost drops over time
1. Technological Innovation
2. Extraction Costs Increase with the stock being taken out
3. Interest Rate drops (has to be negative
i. Very High inflation
Discount rate represents
Zero discount rate
oThen you would take out an equal amount
To preserve resources
Intergenerational resource management
What does it mean that the prices of materials are going down?
Command and Control vs. Incentive-based principles
When are Incentive-based
Tradable Permits system
When would you actually want Command & Control
oUnder uncertainty
oOr something with no point source
oOr massive number of point sources
oCosts too much to measure
oCan’t tax every source
When can you have uniform emissions
Why are Emission Standards neither efficient, nor cost-minimizing
Optimal Extraction questions.**
oExtraction patterns in different cases
If you put a tax on the buyers
NMB goes down
oAnd MUC reduces
pf3
pf4

Partial preview of the text

Download Review of the Three Way User Cost drops into the Time | ECON 462 and more Study notes Economics in PDF only on Docsity!

MUC SR Q 1 Q 1 NMB 1 NMB 2 Nikishna Myron 10/31/ ECON 462 Notes 7. HOMEWORK REVIEW Three ways User Cost drops over time

  1. Technological Innovation
  2. Extraction Costs Increase with the stock being taken out
  3. Interest Rate drops (has to be negative i. Very High inflation Discount rate represents  Zero discount rate o Then you would take out an equal amount  To preserve resources  Intergenerational resource management What does it mean that the prices of materials are going down? Command and Control vs. Incentive-based principles  When are Incentive-based  Tradable Permits system  When would you actually want Command & Control o Under uncertainty o Or something with no point source o Or massive number of point sources o Costs too much to measure o Can’t tax every source  When can you have uniform emissions  Why are Emission Standards neither efficient, nor cost-minimizing  Optimal Extraction questions.** o Extraction patterns in different cases  If you put a tax on the buyers  NMB goes down o And MUC reduces

 Amount extracted goes down o May or may not change o Yet always changes the revenue amounts o Makes it more expensive  Decreases demand  If you put an income tax on the buyer  Split up the income differently  Does not change extraction rate  Only makes money for the government  Tax on the seller  Will lower extraction rates  Raises costs  Bracket looking graph  Take more out both periods  User Costs go down each period  Simply widens graph Any time you have a tax  It gets split up between the buyers and the sellers  The price that buyers pay goes up  The amount the sellers receive goes down  Hit the choke price later Scarcity Rent is equivalent to profit. Choke price has to do with the net price. If you know the choke price is going to drop  Increase extraction Possible Question:  Discuss the contention that the U.S. government could influence world oil prices by changing the volumes of money allocated to fusion research. Specifically, what, if anything, would happen to: (1) today’s price of oil; and (2) the rate at which current reserves are extracted? o Choke price will drop o Extract more  Lower price of oil  Depleted faster o Magnitude would depend on how likely you think this is… Recycling (Chapter 9)  Read the Book  What happens when there are externalities to the extraction of Virgin Ore?

 Last longer from ware and tear