(3) The Clean Air Act required the EPA to set the National Ambient Air Quality Standards at levels "requisite to protect the public health" with "an adequate margin of safety." This has beer referred to as zero-risk standards. Use the graph below to answer questions (3.1) and (3.2) concerning the economics of zero-risk ambient concentration standards. Aggregate marginal abatement costs Aggregate marginal damage

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Chapter22: Frontiers Of Microeconomics
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(3) The Clean Air Act required the EPA to set the National Ambient Air Quality Standards at
levels "requisite to protect the public health" with "an adequate margin of safety." This has been
referred to as zero-risk standards. Use the graph below to answer questions (3.1) and (3.2)
concerning the economics of zero-risk ambient concentration standards.
Aggregate marginal
abatement costs
Aggregate marginal
damage
Ambient
concentration
(3.1) What is the maximum ambient concentration in the graph that would achleve the zero-risk
goal?
(3.2) Is a zero-risk ambient concentration standard efficient in the graph above? Why or why
not?
Transcribed Image Text:(3) The Clean Air Act required the EPA to set the National Ambient Air Quality Standards at levels "requisite to protect the public health" with "an adequate margin of safety." This has been referred to as zero-risk standards. Use the graph below to answer questions (3.1) and (3.2) concerning the economics of zero-risk ambient concentration standards. Aggregate marginal abatement costs Aggregate marginal damage Ambient concentration (3.1) What is the maximum ambient concentration in the graph that would achleve the zero-risk goal? (3.2) Is a zero-risk ambient concentration standard efficient in the graph above? Why or why not?
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