Emissions taxes and tradable emissions permits both ensure that any given reduction in total pollution is achieved at the lowest possible cost.This is not the case for environmental standards since they fail to ensure that those who can reduce pollution most cheaply are in fact the ones to do so.

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Emissions taxes and tradable emissions permits create a market-based approach to reducing pollution, where the most cost-effective solutions are incentivized. Environmental standards, on the other hand, rely on a command and control approach, which may not result in the most efficient use of resources.

Emissions Taxes and Tradable Emissions Permits Both Ensure That Any