S3. a. Annual generation of 3.8 billion MWh of electricity at minimum cost
b. Adding the constraint that carbon emissions must average below .5 tons
per MWh implies the solution: C = .43, CC = .5, NG = 1.9, N = .53, H = .
44, and R = 0. Clean coal, natural gas (which are both relatively cheap and
clean) and hydroelectric power (clean but expensive) are all used up to
c. Using the spreadsheet optimizer while honoring both constraints, one finds
the solution: C = .08, CC = .5, NG = 1.9, N = .75, H = .44, and R = .13.
Dirty coal is nearly eliminated from the mix in favor of the “cleaner”
d. With an $80 carbon tax in place, the costs of the various power sources
(per MWh) inclusive of the tax become: $128, $104, $77, $115, $100, and
$150 respectively. The four cheapest sources are used up to their
S4. a. Absent the possibility of trade, the US sets its outputs (cells C8 and D8)
to maximize its total value (cell E17) subject to spending no more than its
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