Suppose industry abatement costs rise from $850 million in 2011 to $1,000 million in 2012 in nominal

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Suppose industry abatement costs rise from $850 million in 2011 to $1,000 million in 2012 in nominal terms and that the CPI is 100 in 2011 and 106 in 2012.

a. Evaluate the change in costs over the period in real terms, first in 2011 dollars and then in 2012 dollars.

b. Are your answers the same? Explain why or why not.

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Environmental Economics and Management Theory, Policy and Applications

ISBN: 978-1111826673

6th edition

Authors: Scott J. Callan, Janet M. Thomas

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Question Posted: Sep 22, 2018 12:57 PM

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Suppose industry abatement costs rise from $850 million in 2011 to $1,000 million in 2012 in nominal

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a Using the conversion formula presented in the text the two cost ...View the full answer

Environmental Economics and Management Theory, Policy and Applications

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