Asked by Sameeha Riptee on May 31, 2024
Verified
Consider a situation in which the government has limited information about costs and benefits of pollution abatement associated with a given industry. However, it is known that the marginal social cost curve for emissions is much steeper than the marginal cost of abatement curve (in absolute terms). In this situation, which method of emissions control is preferable when the greatest concern is with accuracy of control rather than the cost of control? That is, should a fee be used or should a standard be used? Explain.
Pollution Abatement
Measures and strategies implemented to reduce, manage, and control environmental pollution.
Marginal Social Cost
The total cost to society of producing an additional unit of a good or service, including private costs and any externalities.
Emissions Control
Regulations and technologies designed to reduce pollution and greenhouse gas emissions from various sources.
- Evaluate the effectiveness of pollution control methods considering cost and social impacts.
Verified Answer
The relative slopes of the curves are important in determining which method of control yields the greatest variation in possible increase in social cost.
Learning Objectives
- Evaluate the effectiveness of pollution control methods considering cost and social impacts.
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