KREFT G202 EVALUATION TEST QUESTIONS AND
ANSWERS SURE A+
✔✔According to the Suncor case update, has the ICO2N network made significant
investments in CC&S technology?
1)Yes, because the ICO2N network encountered obstacles in effectively lobbying
against the US federal green energy policy.
2) Yes, because of the ICO2N network's exposure to considerable social risks,
particularly since RBC stopped financing all the network members.
3) Yes, because the ICO2N network estimated that it is reasonable for this highly
performing industry to finance the first $7.5 billion cost independently of government
assistance.
4) No, because the ICO2N members were not vulnerable to a customer boycott
campaign. - ✔✔4) No, because the ICO2N members were not vulnerable to a customer
boycott campaign.
✔✔Under the pollution permit trading model that we developed, Marginal Abatement
Costs are measured as the...
1) government's enforcement costs of regulating the pollution trading market.
2) firm's lost profit from decreasing output to reduce pollution.
3) market's price for the pollution permits.
4) firm's R&D costs incurred when inventing new green technology alternatives. - ✔✔2)
firm's lost profit from decreasing output to reduce pollution.
✔✔Which of the following statements is false regarding our model of tradable pollution
permits?
1) If the demand for pollution permits increases, the market price of the permit will
decrease.
2) When a firm produces a unit of product and emits a unit of pollution, it must have an
associated pollution permit.
3) The pollution permits specify the type of pollution, amount of pollution, and time
period of use, and are treated as commodities that are traded at a going market price.
ANSWERS SURE A+
✔✔According to the Suncor case update, has the ICO2N network made significant
investments in CC&S technology?
1)Yes, because the ICO2N network encountered obstacles in effectively lobbying
against the US federal green energy policy.
2) Yes, because of the ICO2N network's exposure to considerable social risks,
particularly since RBC stopped financing all the network members.
3) Yes, because the ICO2N network estimated that it is reasonable for this highly
performing industry to finance the first $7.5 billion cost independently of government
assistance.
4) No, because the ICO2N members were not vulnerable to a customer boycott
campaign. - ✔✔4) No, because the ICO2N members were not vulnerable to a customer
boycott campaign.
✔✔Under the pollution permit trading model that we developed, Marginal Abatement
Costs are measured as the...
1) government's enforcement costs of regulating the pollution trading market.
2) firm's lost profit from decreasing output to reduce pollution.
3) market's price for the pollution permits.
4) firm's R&D costs incurred when inventing new green technology alternatives. - ✔✔2)
firm's lost profit from decreasing output to reduce pollution.
✔✔Which of the following statements is false regarding our model of tradable pollution
permits?
1) If the demand for pollution permits increases, the market price of the permit will
decrease.
2) When a firm produces a unit of product and emits a unit of pollution, it must have an
associated pollution permit.
3) The pollution permits specify the type of pollution, amount of pollution, and time
period of use, and are treated as commodities that are traded at a going market price.
