A command-and-control policy
A) is unlikely to have any impact on the amount of pollution emitted.
B) does not affect the production costs of firms.
C) usually finds the most efficient pollution abatement technology.
D) decreases the incentive for firms to develop efficient abatement technologies.

Question

Quizplus · Accepted Answer

A command-and-control policy sets specific regulations and targets for firms to meet in terms of pollution reduction, without giving them much flexibility in how they achieve those reductions. This can decrease the incentive for firms to invest in developing more efficient and cost-effective ways to reduce pollution, as they are only required to meet the minimum standards set by the regulations. Therefore, it can discourage firms from investing in innovative pollution abatement technologies, and may hinder overall progress in reducing pollution levels.

A Command-And-Control Policy