, ECS3704 Assignment 1 (COMPLETE ANSWERS) Semester 2
2024 - DUE August 2024 ; 100% TRUSTED Complete, trusted
solutions and explanations.
Analyse with the aid of a diagram, why it may be necessary for
government to intervene in the case of pollution created by steel
production. Using the same diagram, explain the policy options
at the disposal of government to address this issue.
Analysis of Government Intervention in Pollution from Steel
Production
Introduction
Pollution from steel production represents a significant
environmental challenge due to the emission of pollutants such
as carbon dioxide (CO₂), sulfur dioxide (SO₂), and particulate
matter. Government intervention may be necessary to address
the negative externalities associated with steel production.
Diagram: Market Failure due to Pollution
Here is a simplified diagram to illustrate the situation:
Diagram Explanation:
1. Supply and Demand for Steel:
o Supply Curve (S): Represents the cost of producing
steel.
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