Many 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) specify the behaviour that needs to be changed.
D) target behaviours in a way that can be enforced.

Question

Quizplus · Accepted Answer

Environmental standards may be too rigid and not flexible enough to allow for firms to find the most cost-effective ways to reduce their pollution levels. Alternatives such as taxes, cap and trade systems, and pollution reduction incentives allow for market forces to drive down pollution levels while minimizing costs for firms.

Many Economists Believe That There Are More Efficient Ways to Deal