A technology forcing policy is one that
A) forces firms to use a specific technology to abate emissions.
B) requires pollution control targets that force firms to innovate in order to meet the targets and experience reasonable cost increases.
C) forces technology firms to develop environmentally friendly solutions.
D) none of the above.

Question

Quizplus · Accepted Answer

A technology forcing policy sets pollution control targets that require firms to innovate and develop new technologies to meet the targets. This can lead to increased costs for firms, but also stimulates the development of cleaner technologies. Option A is incorrect because it specifies a particular technology, rather than requiring firms to develop their own solutions. Option C is incorrect because it only addresses technology firms, rather than all industries. Option D is incorrect because technology forcing policies do exist.

A Technology Forcing Policy Is One That