It is efficient to reduce pollution up until the marginal benefit from reducing the pollution equals the marginal cost of abatement.

Question

Quizplus · Accepted Answer

This is the fundamental principle of environmental economics: to reach an optimal level of pollution reduction, one should continue to reduce pollution until the additional benefit from further reduction is equal to the additional cost of reducing it. This is known as the optimal level of pollution abatement.

It Is Efficient to Reduce Pollution Up Until the Marginal