Question

19. A large polluting industry that is unlikely to move under the pollution haven hypothesis if...

19. A large polluting industry that is unlikely to move under the pollution haven hypothesis if a large carbon tax is imposed is ___________________________

Homework Answers

Answer #1

Under pollution heaven hypothesis, a large firm often look for relocation of their factories and officies in different country in serch of cheap labor and raw material and capital. In this process they often end up using low environmental standard. These firms thus look for a country with rather less strict environmental norm to reduce costs. Thus a place with high carbon tax is a unlikely place for a firm to be relocated under pollution heaven hypothesis.

Therefore, the correct answer is: TRUE/ increasing the cost of reallocation

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
To reduce the level of pollution emitted by firms in an industry, the government could use...
To reduce the level of pollution emitted by firms in an industry, the government could use a cap-and-trade policy or a carbon tax (where the government taxes carbon producers based on the amount of carbon produced). Which of the following is true? Choose one: A. The price of the good sold will rise under either policy, and there will be a reduction in the level of production. B. The quantity of the good sold will fall under either policy, but...
Inefficient Environmental Policy Consider a city where each polluting firm initially generates two tons of pollution....
Inefficient Environmental Policy Consider a city where each polluting firm initially generates two tons of pollution. Half the polluters (type L} could cut Pack pollution at a cost of $4 per ton, and the other half (type H) could cut Pack at a cost of $30 per ton. The city is considering two alternative environmental policies: i. Pollution tax: Each firm would pay a tax of $5 for each unit of pollution. ii. Uniform-reduction: Each firm would Pe required to...
Suppose firms in a perfectly competitive industry generate water pollution as a by-product of their production,...
Suppose firms in a perfectly competitive industry generate water pollution as a by-product of their production, and they are not charged for this. Who benefits from their use of the environment as a dumping ground? If an emissions tax is imposed, costs to these firms increase and emissions drop. Who will bear the burden of this tax? Is that fair?
To fight the negative economic effects of the Covid-19 virus, several European governments have promised large...
To fight the negative economic effects of the Covid-19 virus, several European governments have promised large stimulus packages and tax cuts. Will such measures transfer wealth from future to current generations? Under which circumstances?
The pharmaceutical industry often comes under fire, especially during times of a pandemic, like the COVID-19...
The pharmaceutical industry often comes under fire, especially during times of a pandemic, like the COVID-19 outbreak we are seeing right now. This is because the sector has become a sort of poster child for the patent system – a firm invests a large amount of time and money into developing a drug, which eventually saves lives, but in return it gets to be the monopoly seller of this drug for 20 years. To put some specific figures on it,...
Mexico’s automobile industry is booming. Bolstered by $19 billion in new investment from foreign carmakers, including...
Mexico’s automobile industry is booming. Bolstered by $19 billion in new investment from foreign carmakers, including Nissan, Honda, Volkswagen, and Mazda, vehicle production doubled between 2009 and 2014 to an estimated 3.2 million vehicles. This investment surge has transformed Mexico into the eighth-largest automaker in the world, and it’s not over yet. In 2014 and 2015, Toyota, Mercedes-Benz, Hyundai-Kia, BMW, and Volkswagen all outlined plans to build new state-of-the-art factories in Mexico. Audi is also constructing a $1.3 billion factory...
Mexico’s automobile industry is booming. Bolstered by $19 billion in new investment from foreign carmakers, including...
Mexico’s automobile industry is booming. Bolstered by $19 billion in new investment from foreign carmakers, including Nissan, Honda, Volkswagen, and Mazda, vehicle production doubled between 2009 and 2014 to an estimated 3.2 million vehicles. This investment surge has transformed Mexico into the eighth-largest automaker in the world, and it’s not over yet. In 2014 and 2015, Toyota, Mercedes-Benz, Hyundai-Kia, BMW, and Volkswagen all outlined plans to build new state-of-the-art factories in Mexico. Audi is also constructing a $1.3 billion factory...
What role could the governance of ethics have played if it had been in existence in...
What role could the governance of ethics have played if it had been in existence in the organization? Assess the leadership of Enron from an ethical perspective. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies, collapsed in 2001 under a mountain of debt...
Discuss ethical issues that can be identified in this case and the mode of managing ethics...
Discuss ethical issues that can be identified in this case and the mode of managing ethics Enron finds itself in this case. How would you describe the ethical culture and levels of trust at Enron? Provide reasons for your assessment. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among...