Question

If new technologies reduce the marginal cost of abatement​ (MCA), which method of regulating emissions will result in the largest reduction of​ emissions? A. Transferable emissions permits. B. Emissions fees C. Emissions standards. D. All three methods will result in the same level of emissions reduction.

Answer 1

The answer is option D) All three methods will result in the same level of emissions reduction.

Step-by-step explanation:

Marginal abatement cost is the cost associated with eliminating a unit of pollution.

As the amount of pollution released goes down, the marginal abatement cost increases.

Transferable emissions permit allow Firms that pollute less to sell their leftover pollution permits to firms that pollute more.

Emissions fee is a charge for permits to discharge specific quantities of a specific pollutant per time period.

made for market-based approach to controlling pollution by providing economic incentives for reducing the emissions of pollutants. A central authority allocates or sells a limited number of

Emissions Standards set quantitative limits on the permissible amount of specific air pollutants that may be released from specific sources over a specific period. It is a legal requirement for companies that emit harmful gases into the atmosphere.