Economists believe that there are more efficient ways to deal with pollution than with environmental standards because these standards do not:
A)reduce pollution enough.
B)allow reductions in pollution to be achieved at minimum cost.
C)internalize the externality.
D)provide for any means of enforcement.

Question

Quizplus · Accepted Answer

Economists believe that market-based solutions such as pollution taxes or cap-and-trade systems are more efficient in reducing pollution at minimum cost compared to environmental standards, which may not take into account differences in the costs of reducing pollution across industries. Environmental standards also do not provide incentives for innovation in pollution reduction technologies. However, environmental standards can still be effective in reducing pollution in cases where market-based solutions are not feasible.

Economists Believe That There Are More Efficient Ways to Deal