Perman, Ma, Common, Maddison and McGilvray

Chapter 7

There are no errors currently known to the authors in Chapter 7 of the 4th edition. However, there were some errors in Chapter 7 of the 3rd edition, detailed below.

Pages 226-227, beginning with the last sentence of the right-hand side column of page 226, and continuing onto the first two sentences on page 227. In these sentences, A and B have been incorrectly reversed. The section should therefore read as:

"In fact, B would buy 10 permits from A at 75 each, because for each of those 10 permits, it would be paying less than it would cost the firm to abate the emissions instead. Conversely, A would sell 10 permits to B at 75 each, ......".

Page 245: In equation (7.11) in the left column on page 245,

"alpha + beta Mi ..." should be "alpha - beta Mi ..."

(Many thanks to Dr Towa Tachibana for bringing this mistake to my attention).