From an economic perspective, the socially best amount of pollution control is that amount in which:

Question

Quizplus · Accepted Answer

The socially best amount of pollution control is when the private and external marginal costs (the costs to society and the environment) of controlling pollution are equal to the private and external marginal benefits of pollution reduction. This is because if the costs exceed the benefits, then the society is worse off as the resources spent on pollution control could have been used elsewhere, and if the benefits exceed the costs, then the society is also worse off as resources are not being efficiently allocated. Therefore, the socially best amount of pollution control is when the costs and benefits are balanced.

From an Economic Perspective, the Socially Best Amount of Pollution