Figure 19.5.2
-Refer to Figure 19.5.2 above. Once consumers and firms develop awareness of the benefits of reducing energy consumption,

Question

Quizplus · Accepted Answer

Even though consumers and firms have developed awareness of the benefits of reducing energy consumption, a tax on emissions is still necessary to ensure that the socially optimal level of industry output is achieved. However, the tax would be lower than before as a result of the increased awareness and the resulting decrease in emissions.

Figure 19.5.2 -Refer to Figure 19.5.2 Above. Once Consumers and Firms Develop