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Principles of Microeconomics-微观经济学原理-经济学作业写作需求之ASSESSMENT -

Principles of Microeconomics 1
Semester 1 2010
Group Assignment
LAKE BONNEY SE
Lake Bonney (Kimberly-Clark Australia November 2003)
Lake Bonney in the South East is a coastal lake about 10 km south of Millicent, South Australia. At over 23 km long, it is one of Australia’s largest freshwater lakes.
For over 60 years, large volumes of wastewater from pulp and paper mills have adversely affected the health of the Lake. Recent technological upgrades and modifications to the mills have significantly improved the quality of wastewater discharged into the Lake. Monitoring by the Environment Protection Authority has revealed that the Lake water quality has improved in recent years but there is still a long way to go.
Use the links you will find on MyUni to get information regarding the discharge of pollutants into Lake Bonney and answer the following questions based on this information. In your answers, marks are awarded for the analysis of the questions using the models and graphs you have studied this term.
Questions to consider.


a) The Indenture Act passed by the state government in 1964 allows Kimberly-Clark pulp mills to discharge wastewater into drains that flow into Lake Bonney with impunity. Explain why this is unlikely to achieve an efficient outcome for the use of the lake as a resource.
b) During 2008–09, the EPA introduced a new licence fee system based on a ‘polluter pays’ principle. One component of the new fee structure is the resource efficiency fee that comprises a load-based fee for the discharge of pollutants in sensitive areas. How would this fee impact on Kimberly-Clark and the level of harmful waste it discharges from its mills into Lake Bonney?
c) An alternative approach to a charge on the level of waste is to use a Pigouvian tax on the pulp produced by the Kimberly-Clark mills. How would a tax on the paper pulp produced by the mills achieve an efficient outcome?
d) The Environmental Protection Authority (EPA) is the branch of government responsible for monitoring and regulating the health of the lake. Explain why this is service of 'monitoring and regulating' is provided by the government and not left entirely to the private sector. With government provision will the community necessarily get an efficient level of this service supplied?
This assignment should be done as a group consisting of up to four people. Although it is not compulsory, if you submit the assignment the mark will count; it is not redeemable.
The limit is 1,500 words, double-spaced typing, plus diagrams and graphs.
Assignments must be submitted as a word document by only one member of the group with the name of the document being the email name of the person submitting.
The due date is 8:00 pm on Monday 17th May.


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