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Econ Need Help!

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(1) Ohio State University has agreed to try to reduce carbon emissions over the five years. As you know, they have bought wind power from a company with wind generation in Northwestern Ohio. This wind power provides about 25% of the energy used by the campus. Now they are considering installing solar panels at the farm, and on a number of buildings out on west campus. The solar panels would generate an additional 15% of electricity for campus, or about 120,000 MWh (1 MWh = 1000 KWh). The solar panels would cost \$25 million to install.
(A) The price of electricity is \$48 per MWh. Assuming a 5 year project horizon, evaluate whether the university should install the solar panels using a 3% and a 7% discount rate. What I mean by a 5 year horizon is that you only need to evaluate the gains of the solar project over a 5 year period. It will obviously provide benefits in the future if it remains installed, but you should ignore years beyond the 5 th year for this analysis.
(B) Because the university is under no obligation to use green energy, they can sell renewable energy credits on the market. The current price of renewable energy credits is \$5 per MWh in Ohio. Suppose Ohio State University sold the credits, would this change your decision about whether or not to invest in the solar panel project.
(C) If the social cost of carbon is \$10 per MWh, what is the present value of the social benefit provided by Ohio State University if it undertook this project, assume only a discount rate of 3% for this calculation and a 5 year horizon.
(D) Discuss the difference between the two discount rates and which rate you think Ohio State University should use when evaluating projects like this.
(2) Suppose the marginal benefits of reducing the damages from climate change are a constant \$25 per ton CO2. The following are marginal cost functions for reducing carbon dioxide emissions from two technologies, coal burning power plants and automobile exhaust. Assume that the units for marginal costs (MC) are \$ per ton CO2 and the units for total tons of abatement (Q) are given in millions of tons of CO2 abated by the technology. MC coal = 3 + 2Q MC auto = 0.5 + Q
(A) Given this information, calculate how much abatement from each technology should be done for the efficient solution?
(B) How much total abatement should be accomplished?
(C) If you try to accomplish the entire amount of abatement calculated in (B) with coal burning power plants only, what would your marginal cost of abatement be? Would this be efficient? Explain your answer.
Nov 7th, 2013
i will help
waiting
Nov 7th, 2013

alright thanks, i think it is pretty easy but I just cant figure it out

Nov 7th, 2013

what do i do click chose

Nov 7th, 2013

when you need this and ow much you pay me?

Nov 7th, 2013

like as soon as possible. and idk its worth like 10 bucks because it would only take me like 20 minutes if i had anything to go off of. It seems like its simple

Nov 7th, 2013

i am checking but i will charge \$20 if you agree

Nov 7th, 2013

If you can get it right, and fast, then sure

Nov 7th, 2013

am totally tired and sleepy for now

so sorry

next time

thanks

Nov 7th, 2013

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Nov 7th, 2013
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Nov 7th, 2013
Nov 19th, 2017
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