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 typically set uniform standards for all firms, regardless of their respective marginal costs of reducing pollution. As a result, some firms may incur high costs to meet the standards, while others may be able to reduce pollution at a lower cost. Alternative approaches, such as market-based mechanisms, may be more effective in achieving pollution reduction at a lower cost by allowing firms to trade pollution permits or pay for emissions.

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