Commercial law Essay Example | Topics and Well Written Essays - 2000 words - 3

Commercial law - Essay ExampleLord Atkin asseverate that a manufacturer owed a legal duty of care to the ultimate consumer of his product. In discussing duty of care as a legal concept, Lord Atkin open up the neighbour principle.Furthermore, in the case of in the Bolton v Stone2 the House of Lords held that whilst foreseeability was relevant to the issue of whether as duty of care exists, once established the issue of fail was ultimately dependant on the tenableness of the defendants actions.In order for a manufacturer to be liable in negligence on that point has to be proximity and the case of Anns v Merton London Borough3 asserted that the proximity test relies on a consideration of the nature of the relationship between the parties. erstwhile duty of care has been established, a claimant has to establish that the manufacturers breach of duty caused actionable damage. The standard of care imposed by law in order to determine a breach of duty is objective and that of the reaso nable and prudent man4. The degree of care to be expected is founded on considering what a reasonable man, careful for the safety of his neighbour would do and requires a consideration of the degree of the likelihood of harm occurring, the cost and practicability of measures needed to avoid it and the seriousness of the consequences5.The prior test for determining causation is the but-for test and whether the claimant would not have suffered the damage but-for Bs negligence6. Moreover, the Wagon Mound No.17 decision asserted that a defendant is only liable to pay damages if the damage was reasonably foreseeable and not too remote.The primary legislative measures pertaining to manufacturer liability are governed by the Trade Practices Act 1974 as amended (TPA), which implies certain rights and warranties into commercial contracts and consumer sales agreements. The TPA

Identifying Cash Flow problems and planning for solutions Assignment

Identifying Cash Flow problems and planning for solutions - Assignment ExampleOf the total sales of $208,000 in January, $20,800 was capital sales, and another $20,280, lowest of commission was from credit card sales, making a total of $41,080 collectible in the month of sales, namely January. Of the remaining $166,400, $55,470 is collectible in each of the hobby three months, namely February, March and April. Thus the total collections for the month of April against the sales of $208,000 are only $41,470. The expenses during the month of January are $187,070, of which $103,740 is against variable costs and $83,330 are touch on costs. Consequently, there is a shortfall of $145,990 in the month of January. Similarly, there are shortfalls in the cash flows for the months of February and March to the tune of $106,490 and $46,530 respectively. The cash flow turns positive from April fore showing that this is a temporary problem, as the cash collections from previous months will comp ensate for the check offs in the subsequent months. However, such situations can recur in future tense if there is a sudden growth or dip in sales during a particular period.It is obvious, from the above analysis, that the problem arises because of the delay in cash collections. There are several approaches that can be used to tackle this problem. Some of the possible measures that can be taken include taking deposits, pass discounts for prompt payments, and factoring receivables (Katz & Green, 2009, p. 464). In the case of Bulltuff, the most appropriate among these seems to be to offer a discount for early payment. Taking deposits may not be a viable alternative as all customers (dealers) may not agree to it. It cannot be implemented selectively on only a a few(prenominal) willing customers. Factoring receivables is likely to be costly. Consequently, offering discounts for early payments appears to be the most workable solution. The company could also simultaneously consider st eps to delay the cash outflows

Aviation Business Assignment Example | Topics and Well Written Essays - 3000 words

Aviation Business - Assignment ExampleLet us estimate the subscriber line cost for this charter company to run Cessna 172 twice a month as mentioned earlier is as followsTotal business cost includes fixed cost, racecourse costs or operational costs and landing and overnight tie down costs. Cost of running the aircraft Fuel required for running this charter evasion is its main component $ 1500 per one hour 2Total flying hours in a month For southern side (2+3) x 2 = 10 hoursFor northerly side (2+2+2) x 2 = 12 hoursTotal flying hours = 10 + 12 = 22 hoursAdditional flying hours to be considered / month = 10 hoursTotal flying hours = 12 + 22 + 10 = 44 hoursTherefore the total cost accounts to $66000 / month.The total cost per one year = $792000 (Fig 1) withdraw costs for aircraft Aircraft was purchased with 25 % residual cost of flight ($259,500) for 5 years $64750Lease cost for one year = $12950Lease cost for one month = $ 1079Fixed costs (This is the daily cost of running a bus iness ie. Rent, -------------------------------------------------------------------2 Jagson Airlines. 2009. Charter services. Charter rules, terms and conditions. Rates flying hours. http//www.jagsonairline.com/charter_services.htm.employee wages It includes the charges for the pilot project Chief pilot is the only one person employed here. His salary component (including the benefit of super annuation) is $60,000 (Fig 2).For additional assisting staff (including the benefit of super annuation) $25,000 cost incurred on equipment, insurance, Air operators certificate, test approvals, Pilots annual checks and renewals = $ 10,000. Lease for the office building $60,000 (Fig 3)Landing and overnight tie down charges for the airfield per year $24,000 (Fig 4)Detailed verbal description of... The charter aircraft will fly from Groote Eylandt (NT) to southern side in one fortnight and will return to Groote Eylandt (NT) and again from the same place it flies to northern side. Therefore i n a month, it has to travel once in southern direction i.e. from Groote Eylandt toEach time, it has to carry two medical staff and 40 kg medical accessories. All the basic principles of aviation including weather preparedness have to be kept in mind while platformning the route plan (Parma, 1999).The net profit calculated by the company is $ 705650 which has been added to all the costs of running aircraft and accordingly annual tender amount of $ 1689600 per year and $140800 per month has been finalized.For sure-fire flying with out any legal complications and for ensuring security norms of the respective nation, Cessna aircraft has to follow the aviation rules and regulations real strictly (Bruckert and Roud, 2007). The federal aviation regulations have to be followed very strictly while carrying out the aviation. The congestion management of aircrafts is essential along with the implementation of emission standards of aircrafts according to the federal regulations3.

Research Paper about Digital Collection in library Essay

Research Paper about Digital Collection in library - Essay ExampleIt occurred to me that the machination of new technologies such as e-readers may provide a solution. Some informal personal research I did revealed that, as you are, no doubt, aware Rutgers University has undergone evidential budget cuts in 2010. I discovered that it costs $4.26 per annum to store a print book in a university library as opposed to $0.15 fro an electronic volume. . In addition, The Rutgers University Libraries are essentially filled to capacity some of the most critical space shortages exist in the Alexander Library. The attached document is a detailed version of an oral presentation that I recently delivered, proposing that comprehensive changes indoors the Rutgers University Library System can be enacted by the implementation of a digital collection and electronic reader program, at a cost that would not be prohibitive. A saving of upwards of $25 million dollars yearly could be saved by not havin g to extend the libraries physically and by reducing storage costs. Surveys have shown that this move to digital format is something that the students and staff of Rutgers woul welcome. I look forward to hearing from you regarding this project and will make myself available at any time. Please feel free to contact me via email at tufkteeden.rutgers.edu, or by phone at 201-835-9098. Thank you so much for your time and consideration. Sincerely, Tae-Eung Kim Going Digital The Adoption of a Digital Collection within Archibald S. Alexander Library & Electronic Reader Program Submitted by Tae- Eung Kim Submitted to Marianne Gaunt Vice President for Information Services and University Librarian Archibald S. Alexander Library Rutgers, The utter University of New Jersey 169 College Avenue, CAC New Brunswick, New Jersey 08901-1163 Submitted on Jan 11, 2011 Scientific and Technical Writing Course Number 35530201 W11 Abstract This report is a qualitative deconstruction of the concept of the li brary and argues that contemporary solutions are possible to enhance the library experience and address the changing nature of library space. Connections are make between the changing nature of this library space and physical shortages of space in Archibald S. Alexander Library. The rising costs of tuition and textbooks are considered, as hearty as the cost of housing a digital book collection versus a print collection (ARL Statistics 2007-2008). Logistical shortcomings of a print collection in isolation are considered in relation to access to research material and Rutgers Special Collections. Overarching technological trends are considered insofar as they demonstrate the publics growing reliance on and acceptance of handheld devices. Trends in media are also considered and sources are cited that forecast the death of print media even the more constitutional views of for example, Arthur Sulzberger, owner and chairman of the New York Times, are considered. A plan is formulated tha t is paradigmatically linked to developments made at Northwest Missouri University, the Google Books Program, and the Gutenburg Project, as well as successful local initiatives reported on in the Rutgers Universitys The Daily Targum.. The plan includes a three part structure and is designed for students in Rutgers potash alum Program in English at the New Brunswick campus to form a pilot study group as precursor to a more oecumenic university-wide

Whom do you admire more as a leader Essay Example for Free

Whom do you admire more as a draw EssayThese deuce heroes check embarked from the same destination but on very different journeys. Whilst they argon both Iliadic heroes at the start of their stories, they develop and change their manner towards the characteristics required of them to succeed. Before we judge them, it is necessary to determine our definition of a successful bringer. A hero from the Iliad must(prenominal) be a speaker system of words and one who is accomplished in action, according to the horseman Phoinix (Iliad. 9. 413). A leader must have these primary qualities then, as he must lead by example, but to create the ideal we must add to this. The leader should rely on no others but in turn listen to enceinte counsel. He should be fair in his justice, in control of his situation and surroundings, keep his manpower abreast of the plan of action and reasoning behind it, rest calm under pressure and have compassion and understanding for his people. Thus his pri mary concerns should be the wel farthermoste of his people, their security and maintaining peace at all costs. His men, a good indicator of his leadership to us, should therefore give him loyalty, trust, and obedience, if the leader has led them suitably.The performance of the men is in any case important, and what they achieve under his direction is representative of his readiness of leadership, though this must be compared with how they act without his presence. These measures can be seen as the important assets of a competent leader, though extenuating and uncontrollable circumstances must be taken into account, as we make a sound judgement of our two heroes. Aeneas and Odysseus themselves are different, both in character and in their quest. Whilst Aeneas is born of the goddess Venus, Odysseus etymologizing has no close link to a deity.However, whilst Aeneas is of divine descent, he receives little or no help from his mother. When he lands at Carthage and Venus is kind suffic ient to give him information about Didos people, she is disguised and departs immediately after having spoken, to the despair of Aeneas (you so often mock your own son you too are cruel A. 1. 406). The other help he receives is limited (thick mist A. 1. 411) and with no knowledge of its existence. Whilst his mother is vehement in defending her son and his people when she is on Olympus (it is unspeakable. We are betrayed A. 1.252 take pity on them A. 10. 60), no action is taken to ease him in his distress or cabinet him in person. Within the Aeneid, the gods are not the ever-present guardians that Athene is to Odysseus in the Odyssey, whether they agree or not (Hercules checked the great groan helpless tears streamed A. 10. 465). Athene on the other hand, not only helps Odysseus with her divine power but she gives him advice (go to the swineherd O. 13. 403), disguises him (change you beyond recognition O. 13. 396), and even cares for his family (instil more spirit into Odysseus son O. 1.89, prompted the wise Penelope O. 21. 1).She is very conversant(p) with Odysseus, conversing at length and speaking very openly (you are so persuasive, so quick-witted, so self-possessed O. 13. 333). Whilst Venus neer alights on the earth to console Aeneas in his grief (heart sick at the sadness of war A. 8. 29), Athene can not bear to leave her hero in distress (I cannot cast off you in your misfortunes O. 13. 332). Aeneas is in fact quite a lonely character and doesnt even compete in the games of Book 5, which we can easily imagine Odysseus competing in (as in the Iliad).His lack of personal contact with the gods shows that he is just a pawn, merely a very important pawn. However, the actual tangible help that Aeneas receives is far greater than Athenes to Odysseus. The son of Venus receives divine weapons beyond all words and of shining splendour. Neptunes actions against the work of Juno allow his crew to survive the shipwreck (calming the swell A. 1. 145). Thus, whilst Aeneas is never given a piece of news from the Olympians that he actually wants to hear (dumb and senseless A. 4. 280), his physical aid from the gods is great.Odysseus receives emotional and strategic help from Athene (the two of them sat down to scheme O. 13. 371), as well as assistance from Hermes in person. However, his encounters with monsters and magic are largely left to him. He is given no divine armour, and Athene checks her aid in deference to Poseidon. But Venus just goes head to head with Juno, despite her lesser status, and aids Aeneas. Odysseus walks with the gods and they interact with him regularly but this counterbalances his character as a loner. Aeneas leadership begins in conjunction with his father Anchises who dies in Sicily, but his son Ascanius is on the voyage also.He also has no alienation from his men, such as Achates, and listens to their words (there is no danger A. 1. 584). Odysseus on the other hand has a difficulty with listening to people. Despite A gamemnons precedent in Book 11 (make a secret approach O. 11. 456), it takes Athenes reminder (tell not a single person O. 13. 308) to prevent catastrophe (I would certainly have come to a miserable end if you, goddess, had not made all this clear to me O. 13. 383). He ignores Circes advice not to put on his armour when he goes past Scylla.He ignores his mens attempts to stop him saying his name to the Cyclops. This inability to accept criticism or advice hampers a good relationship with his men. Odysseus hardly ever refers to his men by name and the only man whom we hear in person is the treacherous Eurylochus and the drunken ghost of Elpenor. No direct speech from a living Ithacan on Odysseus crew is ever said to him in kind. Though Odysseus goes so far as to divide the men up and share command with Eurylochus, his pondering as to whether or not he should lop his head off counts against it.Odysseus acts very much on his own compared to Aeneas whom only ever parts company from hi s men when he is with Dido and when he first lands on Carthage. However, Odysseus is frequently dividing himself from his men. He receives the souls of the dead on his own, with no Sibyl to guide him. He forages on his own in Scherie, he lands his ship away from the others at Telepylus, he lets no one else control the rudder leaving Aeolia and he sleeps away from the others upon Thrinacie. Odysseus repetitive action of taking everything upon himself points to the different record of his and Aeneas travels.Odysseus is going home to free his wife, his home, and his kingdom. His men just happen to be going to the same place. Aeneas though is going to found a new head for the hills with his people. It is essential, for his mission to be completed successfully, that he reaches Latium with a band of men to found Rome. Odysseus though has no commitment to his crew. Homer is very insistent on the fact that the Ithacans on the ship are not worth saving and could not have been saved from de struction, despite Odysseus attempts (in spite of all his efforts their own criminality that brought them to their doom O.1. 6). The point that these are his fellow countrymen, whom he should have the utmost concern for , as their king, seems to be ignored. Aeneas has no legal duty to his crew as their king, unlike Odysseus. The Ithacan crew does have their shortcomings but compared to the Trojans, the Ithacans arduous trials on the seas are far worse. No rest is received from Troy until Aeaea. The Sirens, and Scylla and Charybdis also occur without a pit stop in between it is not surprising that Eurylochus expresses the wish of the men to land and take on supplies (you expect us, just as we areto go wandering off over the foggy sea O. 12. 285). The crew has lost 11 ships by the time they leave the Laestrygonians.

Nietzsche- Good V. Evil Essay Example for Free

Nietzsche- thoroughly V. Evil EssayFriederich Nietzsches first essay in his work On the Genealogy of Morals is a piece titled, Good and Evil, Good and Bad. The essay seeks to trace the origin of incorrupts, specifically the distinction made between cheeseparing and forged and the subjective difference separating evil and bad. He elaborates that in the modern world the way we deposit costly and bad is never questi angiotensin converting enzymed since we assume those renderings were reasonably created. Over time, Nietzsche argues, we lost sight of the origin of these words, pinpointing this moment as when racy take to be judgments declined (Nietzsche 26). Nietzsche holds the ruling blue-blooded manakin responsible for originally defining trade good and bad, while the common lower mannequin followed with their own definition of good and its antithesis, evil. The focus of Nietzsches essay is the search to stipulate good, bad, and evil, and the response of the wispy cl ass to classifications of good and bad made by the powerful class. It is the vexation or as he calls the ressentiment of the commoners or the slaves to the noble class that creates the opposing idea of what constitutes good and what is bad or evil.The original definition of good prone by the powerful aristocratic class caused resentment among the lower classes. This enervateder lower class turned the tables, claiming the legal actions of the nobles were not solely bad, a clear turn from good, entirely evil, and instead the inaction and worn downness inherent in the lower classes was in fact good. Nietzsche argues that the commoners resentment of the powerful is more aggressive than the aristocratic contempt for the weak. This deep resentment further enslaves the weak into a downcast role since the weak yet define their goodness by the evil record of the powerful.The powerful noble class maintains their definition of good without going as far to say that the weak be evil in stead they are pitiable. The weak are unable to challenge the strong and therefore define their position as good despite their inaction, while the strong and powerful noble class is free to live in a world of activity void of constant paritys to their counter part, the weak. Nietzsche believes time has distanced and blinded man from the original conceptions of ethics that are good and bad.The modern conceptions of good and bad come from a practical and believable story where one approved unegoistic actions and called them good from the point of view of those to whom they were done, that is to say, those to whom they were utilizable (Nietzsche 25). Nietzsche continues that later one forgot how this approval originated and, simply because unegoistic actions were always habitually praised as good, one also felt them to be good- as if they were something good in themselves (Nietzsche 25).This is how we define good in the modern day, Nietzsche says, because once the true origin of goo d was ditched along the path of history, man invented a definition that seemed appropriate. He continues stating, The judgment good did not originate with those to whom goodness was shown Rather it was the good themselves, that is to say, the noble, powerful, high-stationed and high-minded, who felt and established themselves and their actions as good, that is, of the first rank, in contradistinction to all the low, low-minded, common and plebeian (Nietzsche 25).The definitions of good and bad were constructed by the noble class who looked to themselves for examples of goodness and then invented a casual explanation of bad as only a contrasting necessity. Nietzsche strengthens his argument that the moralistic sets of good and bad were define by the noble class in a discussion of the origin of the words good and bad in multiple languages. He asks the question, What was the real etymological significance of the designations of good coined in the various languages?I found they all led back to the same conceptual transformation- that everywhere noble, aristocratic in the social sense, is the basic concept from which good necessarily developed (Nietzsche 27-28). Nietzsche wishes to firmly establish that the powerful class elucidated original morality. The action to establish what is good and bad by the noble class is followed by a refutation of these establishments by the weaker class.Nietzsche affirms that it was specifically the Jews, the priestly people of the earth, who were the first to interchange the roles of good and bad in the debate of what constitutes moral behavior. The priest and the noble aristocrat are in opposition to each other. Nietzsche thought this obvious and says, peerless will have divided already how easily the priestly mode of valuation can branch off from the knightly-aristocratic and then develop into its opposite this is especially likely when the priestly caste and the warrior class are in jealous opposition to one another and are unwilling to come to terms (Nietzsche 33).It is key to understand why Nietzsche focuses on the Jews in particular for being the people who reinvent the terms of morality. Nietzsche alludes to the history of the Jews as repressed people who are interpreted advantage of by the powerful and cruel warrior class of aristocrats. It is due to this history that the Jews, that priestly people, who in opposing their enemies and conquerors were ultimately satisfied with nothing less than a radical revaluation of their enemies values, that is to say, an act of the most spiritual revenge (Nietzsche 33-34).This section of Nietzsches first essay is directed at examining the context in which the value of good was redefined, shedding light on why the revaluation of morals by the weak is insufficient and lacking conviction and merit. The trend was begun by the Jews and briefly turned to the more general slave revolt in morality (Nietzsche 34). The slave can be the priest, the peasant, simply the o verall commoner who is weak and defined by impotence.The Jews though, were the first to invert the aristocratic value-equation saying the wretched but are the good the poor, impotent, lowly alone are the good the suffering, deprived, sick, ugly alone are pious and you, the powerful, noble, are on the contrary the evil, the cruel, the lustful, the insatiable, the godless to all eternity and you shall be in all eternity the unblessed, accursed, and damned (Nietzsche 34) The definition of good has been transformed to support the inaction and inferiority of the weak.Nietzsche does not value this change in moral standards not because he believes they are inherently wrong, but by the process in which they were constructed. The man of resentment, to which we may now refer to in place of the Jew, the priest, the commoner, or the weak, has positioned himself to be seen as good because the powerful aristocratic class is evil, cruel, and damned. This is where the problem lies and where it is seen that the argument of goodness coming from the man of resentment, although plausible and not without merit, is superficially constructed and gives no real convincing advantage to the morality of the weak.This slave morality that is created by the man of resentment exists only from vengeance of the external idea of good created by the class of nobles that is also external to the weak and resentful. Herein lies the problem. musical composition the powerful noble class has found what they consider good by looking in on themselves, out of their action and their values, the men of resentment on the contrary have only conjured a lucid definition of good by their blind opposition to the conceived good of the nobles.Nietzsche says, The inversion of the value-positing eye- this need to direct ones view outward instead of back to oneself- is of the essence of ressentiment in order to exist, slave morality always first needs a antipathetical external world it needs, physiologically speak ing, external stimuli in order to act at all- its action is fundamentally reaction (Nietzsche 36-37).The need for an opposing view of what is moral and good is needed for the man of resentment to redefine what he thinks is moral and good, yet Nietzsche argues that the slave morality does not consist of its own definition it simply labels what was good as evil and assumes this will be a convincing argument for the goodness of those who can define the evil powerful class. The constant comparison the men of resentment make of themselves to the powerful is a fault since the slave morality these men wish to prove is void of real tangible essay of good and can only define goodness in contrast to the evil of the powerful.These powerful are given the upper hand because of the way they define their goodness. Whereas the men of resentment form their slave morality by the external examination of the powerful, The reverse is the case with the noble mode of valuation it acts and grows spontaneo usly, its seeks its opposite only so as to affirm itself more gratefully and triumphantly- its negative concept low, common, bad is only a subsequently-invented pale, contrasting image in relation to its substantiative basic concept (Nietzsche 37).The difference is in the contempt the powerful have for the weak as opposed to the resentment the weak have for the powerful. The contempt of the weak is weak itself, where it is only a product of the original definition of good. Yet the resentment of the weak is a force that defines them instead of seeing this resentment as only valuable to define what is evil or bad after a self-created concept of good is in place. The man of resentment therefore places value in his opposition to evil.While the evil of the powerful noble class manifests itself in actions of cruelty at times, the powerful are also more clear of better things, as they felt themselves to be smart they did not have to establish their happiness artificially by examining th eir enemies, or to persuade themselves, deceive themselves, that they were happy (Nietzsche 38). The man of resentment on the contrary is burdened by his constant comparison to the evil, continuously having to convince himself that he is indeed good instead of fitting living that way.The man of resentment is in an unfavorable and unfortunate disadvantage. His opposition to the powerful noble always defines his livelihood and happiness, whereas the noble lives a life more free, void of constant comparison. The man of resentment defines the moral values of good and evil out of vengeance and in contrast to the self-established morality of the powerful aristocratic class. These men of resentment, who Nietzsche argues are intrinsicly weak, define goodness not by looking to themselves but by examining the external world of the powerful, which they perceive as evil.The weak superficially construct strength and power from their inferior position by defining good as their humble and peacef ul attitude, a substitution for their natural weakness and inability to challenge the strength of the powerful noble class. These men of weakness have historically succeeded in defining their inferiority as good by demonizing the powerful, but this self-deception constrains the livelihood of the weak as they are weighed down by their constant resentment of the powerful that only hold neutral contempt for the weak. The weak are only redefining the form of slavery that is weakness with a self-deceptive concept of good.

Cap and Trade Policy Paper Essay Example for Free

Cap and Trade policy Paper Essay initiationThe fruit of deoxycytidine monophosphate firing offs is an fundamental angiotensin-converting enzyme not only from an environmental perspective but also an economic one. While cut back carbon emissions is an important one for the health of human beings as well as that of the environment, the boastfulr question is what type of policy strategy is best for both reducing much(prenominal) emissions which efficiency maintain an impact on efforts to mitigate the effects of pollution on clime change.While ther ar options to consider which does not rely on economics technological or output standards achieved by command and control regulationsthey are often fraught with political resistance by industry because they do not allow industry to make believe any choices or play a role in solving the problem of excessive emissions and the burden that these emissions orient on another(prenominal)s. Instead of much(prenominal) draconian m easures establish on fiat, the preferred options rely on economic tools instead to provide fillips to industry to police itself by either incenting investment in emission-reducing and/or energy saving technologies or to adulterate production in line with the total/social-monetary values rather than just the backstage/ constructr- termss of production. Two such(prenominal) economic policies to consider in this regard are emission taskes and diadem-and-trade policies.Overview of Policy Problem blow emissions simplificationConsider a party that faces an increasing marginal pollution hiatus comprise disregard as in the Figure 1. Left unregulated it provide make not to reduce its carbon emissions (a.k.a abate carbon emissions) and avert facing the be of suspension strategy represented by the area underneath the marginal abatement cost curve represented by area (B + C + D) in the diagram below. Figure 1 Marginal Costs and Marginal Benefits of Reducing Carbon Emissions pic Source Econ ci Carbon Tax vs. Cap-and-Trade, 2012, n.pag. Suppose that policy analysts have determined that the economically good level of pollution abatement occurs at the point where marginal benefits of abatement equal the marginal cost costs of abatement as is suggested in economic theory. The resulting level of carbon emissions is e* (reduction in emissions is measured from the far safe in the diagram above to the pointe*). The question is what policy to follow to achieve e* either approximately type of fiat policy involving either about type of output restriction or requiring use of a particular pollution-control technology or some type of policy that involves financial incentives to reduce emissions. This musical theme hypothesizes that policy options involving economic incentives are preferable to those options that involve regulatory fiat.Specification of Economic Policy Models1) A Carbon Emissions TaxOne policy dick that back end be used to achieve this level of ab atement is to set a tax revenue where marginal benefit equals marginal cost represented by the horizontal tax line in the Figure 2 below. Under such a fascinate, the polluter will find that it is cheaper to reduce carbon emissions so long as the marginal cost is lower than the tax. Since the tax bill (A + B) is great than the marginal abatement cost bill (B) to the left of the point e*, the firm will choose to reduce emissions up to the level of C with the remaining emissions level indicated in figure 2 measured from the decently in the diagram. To the right of e*, the marginal abatement costs, represented by areas C + D, are greater than the tax bill (area D) so the firm will choose to reach the tax and continue to emit pollutants beyond e*. Figure 2 The Carbon Emissions TaxpicSource Econ 101 Carbon Tax vs. Cap-and-Trade, 2012, n.pag. So long as the marginal costs and benefits of abatement can be known with certainty, an emissions tax can be set at the point of product of the se deuce measures resulting in an efficient level of pollution emissions at e* with total abatement costs (including taxes paid) to the polluter of area B+D and providing the organization with revenues represented by D (Econ. 101 Carbon Tax vs. Cap and Trade, n. pag.). It is when these marginal costs and marginal benefits are either not measurable in their entirety or when there is uncertainty about the figures obtained that leads to added questions as to whether this would be the best policy to follow.2) A Cap PolicyAn alternative policy to an emissions tax to achieve reductions in emissions through the tools of economics is to set a cap at the point where marginal social benefit equals marginal social cost of reducing emissions/abatement represented by the vertical cap line in Figure 3 below. The polluting firm must reduce its carbon emissions to e* where the marginal social cost of reducing emissions equals the marginal social benefit of the products produced by the polluter.Su ch a policyif the social costs and social benefits can be measured accuratelyresults in an efficient level of emissions produced/reduced at e* with an abatement cost borne byFigure 3 Cap Policy for Each FirmpicSource Econ 101 Carbon Tax vs. Cap-and-Trade, 2012, n.pag. the polluter equivalent to area B (Econ. 101 Carbon Tax vs. Cap and Trade, n. pag.). The issue is whether total social costs can be measured and measured accurately in order to set such a policy at the correct or efficient level of emissions for each firm. Normally such policies do not result in efficiency even though an efficient level of overall emissions can be attained since it does not account for dissimilar costs of abatement in different firms. That is, a level of emissions can be attained that is equivalent to that achieved under an economically efficient policy but the level is not achieved at the lowest overall cost.One government agency of obtaining individual caps is for the government to auction off emis sion permits that total the pre-set amount of emissions that it feels is optimal. Firms with higher costs of reducing emissions will bid higher than firms with lower cost structures. Again, the only problem is determining what the total amount of emissions should be reflecting all social costs and benefits of reducing carbon emissions.3) A Cap-and-Trade PolicyAn added twist on the cap policy allows firms to trade emission allotments between themselves based on the buyer of allotment bargaining with the removeer over the proper price to pay for the extra allotment. A 2-panel diagram is needed to better understand the logic of profession emission allotments. Figure 4 illustrates the marginal cost of reducing emissions of two firms. One firm is run on older technology with high abatement costs that goes from right to left with zero costs represented at the lower right-hand corner of the diagram. The other firm has newer technology in its plant with lower abatement costs that goes left to right with zero costs represented at the lower left-hand corner of the diagram. The width of the horizontal axis is the reduction in emissions that must be achieved overall to an efficient level.The hybridization of the two marginal cost curves is where economic efficiency is achieved. That is, the value achievedFigure 4. Cap-and-Trade Between Firms PolicySource Econ 101 Carbon Tax vs. Cap-and-Trade, 2012, n.pag. from the last long horse expended on abatement must be the analogous across all firms in the trade. This is known as the equimarginal principle (Boyes and Melvin, 2011,122). The total cost of attaining the efficient abatement/emissions level is equal to the area C + G + K. At the efficient level of emissions, e*, the low cost (of reducing emissions) firm should reduce more than emissions than the high cost (or reducing emissions) firm. Such a policy can be implemented by issuing carbon permits to different firms and allowing them to buy and sell their permits i n the open market. Normally, equal amounts of permits are issued to each firm since it is difficult to assess the true abatement cost a priori. In the end, the marketplace will help determine the differences in cost structure depending on how high a firm is willing to bid for an extra permit or two (Econ. 101 Carbon Tax vs. Cap and Trade, n. pag.).As with the individual firm cap policy, the cap-and-trade policy is predicated on the government being able to determine the optimal level of total emissions desired reflecting social costs and benefits of reducing carbon emissions. Combining the different economic policy options together, it is obvious that it is possible to achieve the said(prenominal) level of reduction in emissions by setting a tax at the same level as where the marginal costs of reducing emissions is the same between firms which is at the level represented by the horizontal line in Figure 4 above. As above, the polluting firms will notice that it is cheaper to abate carbon emissions as long as the marginal abatement cost is lower than the tax. The firms with the higher cost structure will reduce emissions to e* when measured from right to left and incur abatement costs equivalent to area K and pay taxes equivalent to area B+C+F+G. The firms with the lower cost structure will reduce emissions to e* when measured from left to right and incur abatement costs of C+G and pay taxes equivalent to areas J + K in Figure 4.Setting a cap on each individual firm will produce the same level of reduction in emissions, but given that it is difficult, if not impossible, to individualized caps based on different cost structures of abatement, an efficient outcome is difficult to achieve under such a policy even though emissions are reduced to the same overall level. Regarding the market failure collectible to the negative carbon externality, both a carbon tax and carbon cap-and-trade will achieve the same level of incr shut upd efficiencyassuming that measureme nts of costs and benefits can be measured accurately by reducing emissions to the optimal level at minimum cost. The real difference in these policies is due to differences in the distribution of costs.In the carbon tax policy, the government receives added revenues while in the cap and cap-and-trade policies when permits are simply handed out to firms, the firm has no additional outlays other than the cost of abatement to stay within the cap or to purchase additional allotment from other firms. If the permits are initially auctioned off by the government, the additional revenues to the government should be nearly the same as with a tax scheme if marginal social costs and benefits have been measured accurately. However, the economics-based policies are preferable to policies based on fiat where specific technologies (e.g., smoke-stack scrubbers) or a uniform cap on emission outputs across all firms since these other policies fail to take into account social costs and benefits. Wit h regard to the economics-based policies, the interest added impacts may also occur.First, in addition to static efficiencyefficiency occurring within a single period of timethere may also be dynamic efficiency within these policy schemes whereby firms have an incentive to adopt new technology over time to reduce their marginal costs of reducing carbon emissions (Econ. 101 Carbon Tax vs. Cap and Trade, n. pag.). Secondly, carbon emission taxes and/or auctioning permits will generate additional government revenue that might be used to offset conglomerate distortionary taxes on labour and/or capital (Econ. 101 Carbon Tax vs. Cap and Trade, n. pag.).Evidence and AnalysisThere are various problems associated with the design of emissions tax regimes warranting discussion. First, if such a tax were placed on individuals rather than firms without any offsetting changes in other taxes or government transfers, a carbon tax might be regressive suggesting that the highest tax burden would be placed on the poor (Poterba, 1991, 11). This is mostly applicable to gasoline taxes where a flat emissions tax would make up a higher percentage of the income of poorer over wealthier taxpayers thus, an issue of equity arises here. Likewise, firms with higher simoleons margins would shoulder less burden from the tax than firms with lower profit margins given a similar costs of pollution abatement. Poterba (1991) suggests that this regressiveness could be offset by changes in either the direct tax system or in government transfers.Second, as the population grows and production totals continue to increase to meet the demands of this growing population, emission taxes will need to rise to keep emissions at a particular level this may lead to a set of distortions in terms of domestic vs. foreign production whereby firms can transfer production to other jurisdictions that do not have such taxes in place. Thus, international trade leads to an opportunity to get around the tax scheme and the higher the taxes instituted, the higher the incentive to engage in such behaviour.Thus, if emission taxes differ significantly between two neighbouring jurisdictionfor example, the State of New York and Connecticut or even New York and one of its neighbouring Canadian provincesthere is an inherent incentive to move production outside of the jurisdiction with the highest taxes and import products from elsewhere. Third, a central issue regarding the design of carbon emissions taxes to harmonize such polities with other fiscal instruments designed to mitigate the effects of climate change. For instance, it is important to ensure that taxes on chlorofluorocarbons and emissions from fossil fuels are comparable to avoid distortions in exercise that may lead to a worse outcome for the environment than in the absence of such policies (Poterba, 1991, 27).Bosquet (2000) conducted a review of the evidence regarding the impact of carbon emissions taxes on the environment and the economy. She claims that environmental taxes involve the shifting of tax burden from employment, income, and investment to resource depletion and waste. She asks the general question of whether such tax reform can produce a double benefit by helping the environment and the economy simultaneously.Based on her reviews of the literature and available evidence, she concludes that when emissions taxes are instituted, they are generally associated with reductions in payroll taxes, andif wage-price ination is preventedthey often result in signicant reductions in pollution and small gains in employment (Bosquet, 2000, 19). Also associated with the implementation of such environmental taxes are also marginal changesgains or losses in production in the short to medium term, while investments decease marginally and prices increase. However, she cautions that the results of such environmental taxes in the long-term are less certain (Bosquet, 2000, 29).With regard to cap and cap-and-trade policies, the e vidence is also available regarding the effectiveness and consequences of such policies. Stavins (2008) describes a graduated cap-and-trade scheme that involves initially just Carbon gasses with 50% of permits issued to polluters in the market free of charge and other half auctioned off. Over 25 years, the percentage auctioned off each year will gradually increase to 100% and other greenhouse gas emissions will be included over this time span. The idea is to implement a gradual iterative policy with a slow trajectory of emission reductions. As time goes on, other emissions are included in this scheme and the system provides for harmonizing this scheme over time with effective cap-and-trade systems and other emission credit reduction programs in other jurisdictions. This harmonization effectively addresses the issue raised with emission tax policies that are unilaterally established in one jurisdiction without consideration for the policies in neighbouring jurisdictions.If there is an effective way to dovetail policies in different jurisdiction, then this would level the playing field between domestic and imported products. Regarding actual cap-and-trade policies already in place, Colby (2000) analyzes a cap-and-trade policy for limiting Sulfur Dioxide emissions. The changes cauline from the Clean Air Act of 1990 which allowed for a nationwide cap-and-trade policy for industrial firms emitting sulfur dioxide into the atmosphere. Marginal costs of reducing emissions fell substantially duringn the 1990s due to reduced costs of installing scrubbers, reduced costs of flue gas desulfurization, and falling costs for low sulfur coal all due, to a large extent, to an active program of trading/buying allowances between firms that emerged after a few years of experience after the program was initiated.As Colby (2000) states, The allowance trading market enhanced competition among the different methods that firms use to control emissions, adding impetus to cost reduction s (Colby, 2000, 642). Low allowance prices and falling marginal costs associated with reducing emissions produced earlier-than-predicted cutbacks in sulfur dioxide emissions. Allowance prices rose from lows of $80-90/unit in 1996 to about $215/unit in mid-1999 spurring further conservation efforts.Colby (2002) does mention that design and implementation of cap-and-trade schemes involves some important policy tradeoffs equity among the players, balancing use levels with resource conditions, facilitating transactions between firms wishing to trade allowances, accurate accounting for externality costs, assuring fit monitoring of emissions levels, and documenting welfare gains due to the policy. She says that efficient trading mechanisms can be more easily implemented when there is a strong political or legal mandate to cap resource use and trading allowances are sensed by all parties involved to be a way to ease adjustment to limits on emissions (Colby, 2000, 638).In choosing between the various policies, it is inevitably important to sense the level of uncertainty over measuring the items of interest. With regard to emissions taxes, it is important to have fairly accurate estimates of marginal social costs and benefits and with regard to cap-and-trade schemes, there necessarily to also be a fairly accurate means of estimating the optimal level of emissions given all the costs and benefits involved in reducing emissions.If it becomes difficult to measure these items accurately, then the expected deadweight loss and associate probabilities of various miscalculations needs to be assessed and compared across the different strategies to determine the policy that produces the smallest expected deadweight loss which is key from an economic perspective. Since policies based on fiat, such as technology mandates and non-economically based output standards, are not set with regard to these types of measures, it is likely that the deadweight economic loss associated with these policies will be greater than for either emissions taxes or better yet, cap-and-trade policies. oddmentThe evidence suggests that economics-based emissions policies are preferred over policies based on fiat. Moreover, the strongest evidence for promoting investment in pollution control equipment and reducing emissions that mitigate the effects of climate change appear to involve cap-and-trade policies. Partially, this might be due to the flexible design of such policies whichthrough the auctioning and/or trading of allowancesaccount for changing market conditions. This policy, even more so than emission taxes, forces the industry to face current market conditions through the use of auctions and trading for emission allowances. As a result, the parties are forced to make choices based on strong economic criteria to obtain efficiencies over time.Works citedBosquet B. 2000. Environmental Tax Reform Does It Work? A watch of The Empirical Evidence. Ecological Economics. 34, 19-32,C olby G. 2000. Cap-and-Trade Policy Challenges A Tale ofThree Markets. Land Economics, 76, 638-658.Econ. 101 Carbon Tax vs. Cap-and-Trade. 2012. Website.Retrieved on June 5th, 2012 from http//www.env-econ.net/carbon_tax_vs_capandtrade.htmlMelvin W. Boyes M. 2011. Microeconomics. 9th ed. Marion, OH South-Western, Cengage Learning,Poterba JM. 1991. Tax Policy to Combat worldwide Warming On Designing a Carbon Tax. NBER Working Paper. MIT-CEPR 91-003WP. Retrieved on June 7th, 2012 from http//dspace.mit.edu/bitstream/handle/1721.1/50159/28596145.pdf?sequStavins RN. 2008. Addressing Climate Change with aComprehensive U.S. Cap-and-Trade System. Nota Di Lavoro 67.2008 Fondazione Eni Enrico Mattei. Retrieved on June 7th, 2012 from http//www.feem.it/userfiles/attach/ issuance/NDL2008/NDL2008-067.pdf