It is highly unlikely that environmental standards are set at an efficient abatement level because of
A) legislative constraints
B) the absence of full information about the MSB and MSC of abatement
C) differences in MSB and MSC levels at the regional level
D) all of the above

Question

Quizplus · Accepted Answer

Legislative constraints often limit the ability of policymakers to set environmental standards at an optimal level. Additionally, the full information about the marginal social benefit (MSB) and marginal social cost (MSC) of abatement may not be available, leading to suboptimal standards. Lastly, regional differences in MSB and MSC levels may further complicate the setting of efficient abatement levels. Hence, all three options are correct, and the correct answer is D.

It Is Highly Unlikely That Environmental Standards Are Set at an Efficient