When an environmentalist insists that clean air is essential to health and that air pollution should be reduced to zero,this environmentalist has ignored
A) the Coase theorem.
B) the tragedy of the commons.
C) pollution abatement.
D) the cost-benefit principle.
E) the law of demand.

Question

Quizplus · Accepted Answer

The environmentalist has ignored the cost-benefit principle, which suggests that any policy decision should take into account both the costs and the benefits of the decision. In this case, reducing air pollution to zero is likely to have very high costs, which may not be justified by the benefits in terms of improved health. Instead, it may be more appropriate to consider a level of pollution that balances costs and benefits, which could involve some level of pollution abatement but not necessarily reducing pollution to zero.

When an Environmentalist Insists That Clean Air Is Essential to Health