Economics question (1 Viewer)

[Jelone]

Can someone help me with this economics question.

Why do firms have a demand for pollution?

what reasons that might cause a different demand curve for pollution for each firm?

I'm confussed on how i can do research on these 2 questions. like if i use books how can i put them into my own words?

thanks

 

[tOnnyAyye]

Hey Jelone, I assume that you're doing the Bachelor of Business at UTS. well same here and im doing eco for business this semester.

Why do firms have a demand for pollution ??
Consider how a product is produced. various inputs are required such as raw material, labour and capital. Under capital you have 'machines' that are used to produce goods and/or services. Without pollution, you can't produce -> loss in profit for firm.

Reasons for different demand curve ?
It varies depending on the business goal and how it produces its goods and services. Firms such as Coke may need to demand more for pollution to meet the needs of consumers.

Thats the gist of what i think

 

[Kurby]

Why do firms have a demand for pollution?

It's a negative externality that is a by product of producing a good or service. It actually costs them to NOT produce pollution. Hence why a carbon trading environmental scheme works. Each firm has a willing to pay for that pollution.


what reasons that might cause a different demand curve for pollution for each firm?

The demand for pollution I think depends on the cost structure for each firm to reduce that pollution. Like some coal plants are dirty emitters of pollution so it'll cost them more to keep it down and hence they demand more. But a solar plant will demand less since they are clean.