Final answer:
Government environmental policy, while having some success, has limitations and economists now suggest more flexible, market-oriented policies.The correct answer is option C.
Step-by-step explanation:
Government environmental policy has limitations that reduce its effectiveness and may even cause the opposite of what was intended.
Traditional environmental policies have often focused on governmental limits for pollutant emissions, which can be successful to a point. However, economists have suggested more flexible, market-oriented policies that might reduce pollution at a lower cost.
This comprises approaches that include taxes, markets, and property rights to ensure that firms face the social costs of their negative externalities.
While measures like U.S. environmental laws have provided more benefits than costs overall, there's a need for policies that offer greater flexibility and cost savings, such as those with market-based solutions for environmental issues.The correct answer is option C.