3. The San Joaquin Valley has some of the nation's worst air quality... a result of...

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3. "The San Joaquin Valley has some of the nation's worst air quality"... "a result of the valley's topography - surrounding mountain ranges trap air pollutants -- and pollution sources, including heavy truck traffic on I-5 and Highway 99; diesel-burning locomotives, tractors and irrigation pumps; and wood-burning stoves and fireplaces." (https://www.epa.gov/sanjoaquinvalley/epa-activities-cleaner-air) In late August and September another big source of particulate matter in the valley is almond harvesting, although newer almond sweepers stir up less dust, as do slower speeds and use of olive harvesters for almond harvesting. Air pollution can cause respiratory problems such as allergies, asthma, lung disease, and death. (http://www.modbee.com/news/business/agriculture/article97700222.html, http://www.capitalpress.com/Orchards/20160711/almond-growers-urged-to-reduce-dust-during-harvest, http://www.turlockjournal.com/archives/32907/, http://www.modbee.com/news/article101172192.html) a) Why might it be desirable to have government involved in reducing air pollution in the valley? (Please relate this issue to the Coase Theorem.) b) How could public policy be used? c) What are some of the advantages and disadvantages of alternative approaches? d) What level of government is appropriate for one of these approaches and why? 4. China recently added an additional 10% tax on imported super-luxury vehicles with prices over $190,000 to the existing taxes that add up to 40% to vehicle prices based on engine size. (http://www.cnbc.com/2016/12/01/china-hikes-tax-on-imported-luxury-cars.html). a) Please discuss this tax using some of the criteria from public finance for evaluating a tax. Be sure to include definitions of the key terms used in your arguments. b) What influences on the magnitude of excess burden might come into play with this tax? 3. "The San Joaquin Valley has some of the nation's worst air quality"... "a result of the valley's topography - surrounding mountain ranges trap air pollutants -- and pollution sources, including heavy truck traffic on I-5 and Highway 99; diesel-burning locomotives, tractors and irrigation pumps; and wood-burning stoves and fireplaces." (https://www.epa.gov/sanjoaquinvalley/epa-activities-cleaner-air) In late August and September another big source of particulate matter in the valley is almond harvesting, although newer almond sweepers stir up less dust, as do slower speeds and use of olive harvesters for almond harvesting. Air pollution can cause respiratory problems such as allergies, asthma, lung disease, and death. (http://www.modbee.com/news/business/agriculture/article97700222.html, http://www.capitalpress.com/Orchards/20160711/almond-growers-urged-to-reduce-dust-during-harvest, http://www.turlockjournal.com/archives/32907/, http://www.modbee.com/news/article101172192.html) a) Why might it be desirable to have government involved in reducing air pollution in the valley? (Please relate this issue to the Coase Theorem.) b) How could public policy be used? c) What are some of the advantages and disadvantages of alternative approaches? d) What level of government is appropriate for one of these approaches and why? 4. China recently added an additional 10% tax on imported super-luxury vehicles with prices over $190,000 to the existing taxes that add up to 40% to vehicle prices based on engine size. (http://www.cnbc.com/2016/12/01/china-hikes-tax-on-imported-luxury-cars.html). a) Please discuss this tax using some of the criteria from public finance for evaluating a tax. Be sure to include definitions of the key terms used in your arguments. b) What influences on the magnitude of excess burden might come into play with this tax?