If market-oriented environmental tools offer a mechanism or providing either the same environmental protection at lower cost, or providing a greater degree of environmental protection for the same cost, then this _______ will arise for _______.
A) spillover; market-oriented countries
B) trade-off; command-oriented countries
C) trade-off; all countries around the globe
D) spillover; only the high-income countries

Question

Quizplus · Accepted Answer

Market-oriented environmental tools, by definition, aim to use market forces and incentives to achieve environmental goals more efficiently. This means that the benefits of using such tools—either achieving the same level of environmental protection at a lower cost or achieving a higher level of protection for the same cost—would be relevant to all countries, not just those that are market-oriented, command-oriented, or high-income. This is because the efficiency gains from these tools can be realized in any economic system that decides to implement them, making the trade-off between cost and level of environmental protection a global consideration.

If Market-Oriented Environmental Tools Offer a Mechanism or Providing Either