Developing alternative energy is likely to be an effective policy option to reduce carbon emissions for states and the federal government. However, alternative energy is costly to develop yet produces less energy (than fossil fuels) for the investment. Which evaluative criteria would reflect this high cost- to benefit ratio?
A) equity
B) efficiency
C) market incentives
D) policy analysis

Question

Quizplus · Accepted Answer

The high cost-to-benefit ratio can be evaluated using the criterion of efficiency, which measures the extent to which the benefits of a policy outweigh its costs. Other criteria such as equity, market incentives, and policy analysis may not necessarily be relevant in determining the cost-effectiveness of alternative energy development.

Developing Alternative Energy Is Likely to Be an Effective Policy