Command-and-control policies are desirable because their tough pollution reduction targets force firms to develop new technologies to survive.

Question

Quizplus · Accepted Answer

Command-and-control policies may lead to firms complying with the minimum requirements to avoid fines but may not incentivize them to develop new technologies. Market-based policies such as emissions trading or pollution taxes can create more incentives for firms to invest in cleaner technologies.

Command-And-Control Policies Are Desirable Because Their Tough Pollution Reduction Targets