A large electric utility company spews 62 million tons of greenhouse gases (mostly carbon dioxide) into the environment each year This company has committed to spending $2.1 billion in capital over the next five years to reduce its annual emissions by 6% More will be spent after five years to reduce greenhouse gases further. a. What is the implicit cost of a ton of greenhouse gas? b. If the United States produces 2 billion tons of greenhouse gases each year, how much capital must be spent to reduce total emissions by 4% over the next five years based on your answer in Part (a)? Cons a. The implicit cost of greenhouse gas is $ per ton.
