For a firm with more than one source of emissions, the ________ states that the total costs of meeting a given abatement target will be minimized when the marginal costs of abatement are ________ across sources.

Question

Quizplus · Accepted Answer

The equimarginal principle states that for a firm with multiple sources of emissions, the most cost-effective way to achieve a specific level of total emission reduction is to allocate abatement efforts in such a way that the marginal costs of abatement are the same across all sources.

For a Firm with More Than One Source of Emissions