If the marginal costs of reducing emissions varies among regions, then regulations requiring all regions in a nation to reduce emissions by the same amount will achieve:

Question

Quizplus · Accepted Answer

Uniform regulations that require all regions to reduce emissions by the same amount do not account for the varying marginal costs of reducing emissions across regions. This means that in some regions, it will be more costly to meet the reduction targets (leading to more than the efficient amount of abatement), while in others, it will be less costly (leading to less than the efficient amount of abatement).

If the Marginal Costs of Reducing Emissions Varies Among Regions