30 Apr Question: 1. Calculate the opportunity cost of preserving Nigula bog as a nature reserve. Use the data belo…
1. Calculate the opportunity cost of preserving Nigula bog as a nature reserve. Use the data below assuming the next-best alternative use of Nigula bog is using peat as an energy source The peat deposit of Nigula bog covers about 2,000 hectares. The annual harvest from one hectare is about100 tonnes and one tonne of peat contains 3 megawatt hours (MWh) of energy Assume that peat is sold on a competitive market and the market price is Euro 30 per tonne. The nearby power plant buys the annual peat production and earns Euro 50 per MWh from sales of electricity and heat. Other inputs cost Euro 10 per MWh. 2. The number of visitors to the zoo and the entrance fee is shown in the table below: Entrance fee, Euro Number of visitors per da 0 6 12 800 600 400 200 0 Calculate the change in consumer surplus if the entrance fee increases from three (3) to nine Euro (9). How does the price increase affect the revenue of the zoo? 3. Take the following data as referring to 2000 (they come from UNDP (2001), P and A are for 1999 and T uses CO2 data for 1997), and the world as being the sum of these three groups of nations P, million capita T. CO2 tonnes/S Rich OECD 848 EE and CIS 398 Developing 26,050 6,290 3.530 0.0005 0.001 0.0006 4610 a. Calculate total world CO2 emissions in 2000 b. Work out the 2000 group shares of total population and CO2
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