A policy that puts a price on GHG emissions will help to reduce emissions because

Question

Quizplus · Accepted Answer

By placing a price on GHG emissions, it creates an economic incentive for firms and consumers to switch to cleaner energy sources, reducing overall emissions. This is because it becomes more expensive to emit GHGs, so businesses and individuals will look for ways to reduce their emissions and potentially switch to cleaner energy sources that produce fewer GHGs. Option A and E are incorrect because an increase in energy intensity would lead to an increase in emissions, not a reduction. Option C and D are partially correct, but only option B fully explains why placing a price on GHG emissions can help to reduce emissions.

A Policy That Puts a Price on GHG Emissions Will