Question

Recall the application about the marginal cost and marginal benefit of reducing methane emissions. what does the optimal level of methane abatement depend on?

Answer 1

The marginal benefit of abatement can be found like this. If the marginal benefit is $10, the optimum level is roughly 36 million metric tons. If the marginal benefit were much higher, say $150, the optimum level of abatement is about 69 million metric tons. So basically it it depends on the marginal benefit.