2Module 6 Question 10 ptsWhat are some of the main concerns related to expanding the share of wind power in the energy mix? Select all that apply. Group of answer...

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2 Module 6 Question 10 pts What are some of the main concerns related to expanding the share of wind power in the energy mix? Select all that apply.  Group of answer choices Intermittency Non-dispatchable Ecological issues Geographic variability Competition with other land uses Developed countries have exhausted high-yield sites None of the above   Flag question: Question 2 Question 20 pts What are some of the main concerns related to expanding the share of hydropower in the energy mix? Select all that apply.  Group of answer choices Droughts might interrupt its supply Non-dispatchable Ecological issues It is considered a conventional energy source Competition with other land uses Developed countries have exhausted high-yield sites None of the above   Flag question: Question 3 Question 30 pts Government intervention to support renewables is justified because policies that only increase the cost of carbon emissions address the problem that ______, but do not address the problem that ______. a. Carbon emissions produce externalities whose cost  is not internalized by suppliers b. Regulatory capture distorts regulation from its optimum c. New technology development reaches an optimal level only if technology adoption reaches an optimal scale d. Suppliers have market power e. None of the above Choose the correct responses out of the choices below.   Group of answer choices a & b: a: Carbon emissions produce externalities whose cost  is not internalized by suppliers b: Regulatory capture distorts regulation from its optimum a & c: a: Carbon emissions produce externalities whose cost  is not internalized by suppliers c: New technology development reaches an optimal level only if technology adoption reaches an optimal scale a & d: a: Carbon emissions produce externalities whose cost  is not internalized by suppliers d: Suppliers have market power b & a: b: Regulatory capture distorts regulation from its optimum a: Carbon emissions produce externalities whose cost  is not internalized by suppliers b & c: b: Regulatory capture distorts regulation from its optimum c: New technology development reaches an optimal level only if technology adoption reaches an optimal scale b & d: b: Regulatory capture distorts regulation from its optimum d: Suppliers have market power c & a: c: New technology development reaches an optimal level only if technology adoption reaches an optimal scale a: Carbon emissions produce externalities whose cost  is not internalized by suppliers c & b: c: New technology development reaches an optimal level only if technology adoption reaches an optimal scale b: Regulatory capture distorts regulation from its optimum c & d: c: New technology development reaches an optimal level only if technology adoption reaches an optimal scale d: Suppliers have market power None of the above   Flag question: Question 4 Question 40 pts Demand-pull policies are usually applied to what stage of the innovation process? Select all that apply.  Group of answer choices Basic research Applied Research and Development (R&D) Market for innovation None of the above   Flag question: Question 5 Question 50 pts Why might a regulator prefer a technology-neutral support scheme over a technology-specific support scheme? Select all that apply  Group of answer choices Lower implementation cost for the government Higher levels of dynamic efficiency Higher level of competition in the market for innovation Lower informational burden on the regulator None of the above   Flag question: Question 6 Question 60 pts Which of these are quantity-based instruments to support renewable energy sources? Select all that apply Group of answer choices Tradable Green Certificates Feed-in Tariffs Tax Incentives Auctions Investment Incentives Feed-in Premiums Renewable Portfolio Standards Capital Subsidies None of the above   Flag question: Question 7 Question 70 pts What types of policies are better at incentivizing non-incremental innovation?  Group of answer choices Demand-Pull Policies Technology-Push Policies   Flag question: Question 8 Question 80 pts In the following graph, the target quantity of energy from renewables that the regulator wants to reach with the introduction of a new policy is equal to q2. If the regulator want to implement a technology-neutral support scheme, what price does it need to offer to generators?    Question 100 pts Research suggests that introducing subsidies for renewable energy alongside a cap-and-trade system promotes energy production by the polluting technology. Why is that the case? Select all that apply.  Group of answer choices Because there are positive externalities from knowledge spillovers Because subsidies decrease the price of emission allowances Because the true social cost of carbon emissions is unknown Because of the uncertainty in the future level of the cap None of the above 2 Module 5 Question 10 pts Suppose that a policy-maker is deciding how to regulate carbon emissions. The policy-maker knows that the slope of the curve of the marginal benefit from carbon abatement is very low (the curve is very flat). In this setting, which of the following policy options might be preferred by the regulator?  Group of answer choices Carbon Tax Cap and Trade System Tradable Green Certificates   Flag question: Question 2 Question 20 pts Thinking about Weitzman’s rule (and equation), when do non-economic factors (like administrative simplicity or political acceptability) play the most decisive role in determining what system of pollution control to impose?  Group of answer choices B’’=0 C’’=0 σ2= 0 B’’/C’’=0 None of them   Flag question: Question 3 Question 30 pts Based on the graph below, calculate the DWL from imposing a price-based mechanism to achieve the target level of abatement if the regulator does not know the actual marginal cost of abatement, but the regulator knows its expected value E[MC]. Assume that the actual marginal cost curve is MCH. DWLTax=____  Question 50 pts In a cap-and-trade system, what are the main benefits of distributing allowances through an auction (as opposed to giving them out for free)? Select all that apply.  Group of answer choices Increase the political acceptability of the cap and trade policy  It would increase the efficiency of a cap and trade mechanism    Flag question: Question 6 Question 60 pts What are some of the ways to decrease the price volatility of allowances in a cap-and-trade system? Select all that apply.  Group of answer choices Regulating upstream segments of the supply chain of energy Allowing the ability to bank allowances Auctioning the allowances Ceilings and floors in the prices of allowances Distributing allowances for free Question 70 pts What are some of the reasons why it makes more sense to regulate the upstream segments of the energy industry in a cap-and-trade system?  Group of answer choices To decrease the administrative costs of implementing the regulation To disincentivize the use of highly polluting energy sources To decrease the volatility of allowance prices To generate higher levels of government revenues To help mitigate distributional impacts of the cap and trade system None of the above   Flag question: Question 8 Question 80 pts What are some of the benefits of using a slow ramp-up approach when imposing a carbon tax compared to a “cold turkey” approach according to Weisbach and Metcalf (2009)? Select all that apply  Group of answer choices More certainty for the firms More tax revenues Higher level of political acceptability None of the above Question 90 pts According to our discussion on Weisbach and Metcalf (2009), what are some of the difficulties of setting the tax rate when designing a carbon tax? Select all that apply.  Group of answer choices It is not difficult at all, just set the tax equal to the social marginal damage of carbon emissions like Pigou said  Estimates of the social cost of GHGs emissions can be very heterogeneous  It is very difficult to calculate the social cost of GHGs emissions and even when you can calculate those estimates, the results depend on the assumptions made    Flag question: Question 10 Question 100 pts In Weitzman's equation, what does the σ2 term represent? Group of answer choices The comparative advantage of prices over quantities The comparative advantage of quantities over prices The responsiveness of the marginal benefits of abatement to changes in abatement level The responsiveness of the marginal costs of abatement to changes in abatement level The level of uncertainty over firms’ marginal cost of abatement 2 Module 7 Question 10 pts A car manufacturer is assessing its energy efficiency. Suppose that to produce a car the manufacturer needs 150 MWh of electricity. What is the Energy Efficiency of this car manufacturing process? Energy Efficiency=____      Flag question: Question 2 Question 20 pts Continued from the previous question.   Suppose that the car manufacturer has the opportunity to buy a new plant whose Energy Efficiency is equal to 1car/100 MWh. Which one is more Energy Efficient, the new or the old plant?  Group of answer choices The old plant The new plant We don’t have enough information to answer   Flag question: Question 3 Question 30 pts Continued from the previous questions.   Is the choice of buying the new plant (and selling the old one) Economically Efficient?   Group of answer choices Yes, buying the new plant is economically efficient No, buying the new plant is not economically efficient We don’t have enough information to answer Question 4 Question 50 pts Suppose you are considering capital and energy as the inputs in a production process. If a change in energy prices creates a stronger substitution effect and a weaker output effect, you can infer that:  Group of answer choices Energy and capital are complementary inputs Energy and capital are substitutable inputs Question 60 pts The graph below shows the optimal decision of an individual who is choosing how much to spend on electricity to warm the house (home temperature, t) and on the consumption of other goods (Z). Suppose that the price of electricity (and therefore of keeping the house warm) dropped from Pt to Pt’.  Based on the insight provided by the graph, is the substitution effect for every other good (Z) positive or negative?    Question 70 pts Continued from the previous question.   The graph below shows the optimal decision of an individual who is choosing how much to spend on electricity to warm the house (home temperature, t) and on the consumption of other goods (Z). Suppose that the price of electricity (and therefore of keeping the house warm) dropped from Pt to Pt’.  Based on the insight provided by the graph, is the income effect for every other good (Z) positive or negative?  Question 80 pts Continued from the previous question.   The graph below shows the optimal decision of an individual who is choosing how much to spend on electricity to warm the house (home temperature, t) and on the consumption of other goods (Z). Suppose that the price of electricity (and therefore of keeping the house warm) dropped from Pt to Pt’.    Based on the insight provided by the graph, is the income and substitution effect for home temperature (t) positive or negative?  The substitution effect for t is negative Question 90 pts What are some of the behavioral effects that inhibit the adoption of energy efficiency technology? Select all that apply  Group of answer choices Market failures in pricing electricity Cognitive limitations that prevent people from correctly balancing costs and benefits when making choices Market power in the energy efficiency industry Decision-makers behave as if they apply a higher discount on benefits that occur further into the future compared to what the market interest rate would suggest None of the above   Flag question: Question 10 Question 100 pts Gerarden et al (2015) review empirical studies on the energy-efficient gap. According to that study, what are the most salient obstacles to the adoption of energy efficiency systems? Select all that apply  Group of answer choices Market failures in pricing electricity Market power in the energy efficiency industry Information asymmetry between producers and consumers of energy efficiency appliances Principal agent problem (or split incentives) Some product characteristics of energy-efficient appliances are more relevant to consumers than initially thought  There are unobserved costs of adopting energy efficiency systems that are not usually accounted for When buying an energy-efficient appliance, evaluating the difference between various energy efficiency solutions takes time and effort Organizational inertia None of the above