Which of the following is the most efficient method to reduce pollution emissions?
A) Government pollution charges or taxes.
B) Non-tradable emission standards that cap allowable pollution.
C) Common law enforcement of property rights, when those rights are well-defined and transaction costs are low.
D) Legislated regulations limiting the quantity of emissions allowed by each firm.

Question

Quizplus · Accepted Answer

Common law enforcement of property rights, when those rights are well-defined and transaction costs are low, is the most efficient method to reduce pollution emissions because it allows for the most flexibility and efficiency in the market.

Which of the Following Is the Most Efficient Method to Reduce