Homework 1
Due Weds, Jan 29th
Draw graphs for the following three scenarios. For each, you should identify the WTP/WTA and CV/EV, as well as label the utility functions and axis.
- Your WTP to avoid increased pollution, when firm has property right
- Your WTA higher levels of pollution when you have property right and firm wants more pollution
- Your WTA continued high levels of pollution when you have the right to clean-up adn the firm doesn't want you to.
