Indian Institute of Foreign Trade 2010 Solved Paper

France, South Africa, Australia, Ukraine and Poland form an energy consortium which declares $\mathit{C}{\mathit{O}}_2$ emission of 350 million ton per annum as standard benchmark. The energy consortium decides to sell their carbon emission savings against the standard benchmark to high carbon emission countries. It is expected that the per capita income of each country of the energy consortium increases by 2%, 2.5% and 3.5% p.a. for the next three years respectively. The ratio of $\mathit{C}{\mathit{O}}_2$ emission to per capita income of the each energy consortium country reduces by 50% and remains constant for the next three years. By selling 0.5 $\mathit{C}{\mathit{O}}_2$ emissions [million ton] the energy consortium earns 1.25 carbon credits, then determine the total carbon credits earned by energy consortium in three years.