Direct pollution controls can be inefficient because,for any given amount of pollution reduction,they

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Direct pollution controls can be inefficient because they do not minimize the total cost of pollution abatement. This is because direct controls often do not take into account the differing marginal costs among firms, meaning that some firms may be required to undertake more expensive measures to reduce pollution than others. As a result, firms may not comply with these controls, or they may create new pollution as they eliminate existing pollution in order to minimize their costs. This can make it difficult to achieve significant pollution reductions through direct controls alone, and may require additional measures such as economic incentives or market-based mechanisms.

Direct Pollution Controls Can Be Inefficient Because,for Any Given Amount