What is the economically efficient level of emissions from a particular source?
A) zero
B) the quantity at which the marginal cost to achieve lower emissions equals the additional value of reducing pollution
C) the level determined by EPA (Environmental Protection Agency) scientists that will save the most lives
D) the level emitted when markets are allowed to function with no government regulation

Question

Quizplus · Accepted Answer

The economically efficient level of emissions from a particular source occurs at the point where the marginal cost of reducing emissions equals the additional value of reducing pollution. This is known as the socially optimal level of emissions and results in allocative efficiency. The other choices do not take into account the cost-benefit analysis of reducing pollution and may not result in the most efficient outcome.

What Is the Economically Efficient Level of Emissions from a Particular