The most economically efficient way to reduce pollution is to impose strict environmental standards on all polluters.

Question

Quizplus · Accepted Answer

Imposing strict environmental standards on all polluters may not be the most economically efficient way to reduce pollution because it does not consider the varying costs of pollution abatement across different sources. Market-based approaches like taxes on pollution or tradable pollution permits can achieve the same environmental goals at a lower overall cost by allowing reductions to occur where they are cheapest.

The Most Economically Efficient Way to Reduce Pollution Is to Impose