When a car-parts factory releases carbon dioxide, the local government charges an environmental levy of $12 for each tonne emitted. The factory currently em...
Question 1 Report
When a car-parts factory releases carbon dioxide, the local government charges an environmental levy of $12 for each tonne emitted. The factory currently emits 850 tonnes each year. A new machine would reduce emissions by 150 tonnes, but would not change the organisational structure of the business.
(a) Calculate the annual levy paid before the new machine is installed. [1]
(b) Explain one environmental benefit of installing the new machine. [2]
Answer Details
(a) [1] Calculate the levy from tonnes emitted multiplied by the charge per tonne:
\[850 \times \$12 = \$10\,200\]
The annual levy before installation is $10 200.
(b) [2] The machine reduces carbon dioxide emissions. Therefore, the factory makes a smaller contribution to climate change or air pollution.
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