Direct controls that impose equal percentage reductions in emissions on all firms in the area
A)impose the same costs on all firms.
B)minimize the cost of pollution reduction.
C)penalize firms that have already incurred some costs to reduce pollution.
D)are the fairest way to distribute the burden

Question

Quizplus · Accepted Answer

Direct controls that impose equal percentage reductions in emissions do not consider the individual costs or efforts firms have already made to reduce pollution. Therefore, firms that have previously invested in pollution reduction are penalized because they must reduce further from an already lower baseline, often at a higher marginal cost.

Direct Controls That Impose Equal Percentage Reductions in Emissions on All