question archive The city of Nashville is considering cleaning up pollution
The city of Nashville is considering cleaning up pollution
Subject:EconomicsPrice: Bought3
The city of Nashville is considering cleaning up pollution. The cost of the cleanup is estimated at $2 million. Nashville has 100,000 residents. 20% of the residents are willing to pay $10 each for the cleanup. The rest of the population is wealthier and are willing to pay $20 each. A city councillor proposes that the cleanup be financed by charging everyone in the community a tax of $20.
Is this project desirable from the point of view of the Pareto criterion? Explain.
