Which of the following is the most efficient way to reduce pollution emissions?
A) Emission standards that cap allowable pollution.
B) Government pollution charges or taxes.
C) Legislated regulations limiting the quantity of emissions allowed by each firm.
D) Enforcement of property rights, when those rights are well-defined and transaction costs are low.

Question

Quizplus · Accepted Answer

Enforcement of property rights, when those rights are well-defined and transaction costs are low, is the most efficient way to reduce pollution emissions because it creates incentives for polluters to reduce their emissions.

Which of the Following Is the Most Efficient Way to Reduce