Problem
Reforestation versus Abatement. Suppose your firm commits to reducing greenhouse gases by 11 tons per year. You can pay for a reforestation project that offsets your emissions at a cost of $7 per ton of carbon offset. Or you can modify your production cost to abate pollution. Your marginal cost of abating the first ton is $3; the marginal cost increases by $1 for each additional ton, to $4 for the second ton, $5 for the third ton, and so on.
a. What is the best combination of reforestation offsets and abatement?
b. How much money does your firm save by using the offsets?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.