Conceptually, the efficient level of carbon emissions is the level for which
A)the marginal benefit of reducing carbon emissions is maximized.
B)the marginal cost of reducing carbon emissions is minimized.
C)the marginal benefit of reducing carbon emissions is equal to the marginal cost of reducing carbon emissions.
D)the marginal benefit of reducing carbon emissions is minimized and the marginal cost of reducing carbon emissions is maximized.

Question

Quizplus · Accepted Answer

The efficient level of carbon emissions is where the marginal benefit of reducing carbon emissions is equal to the marginal cost of reducing carbon emissions. This is because reducing emissions beyond this point would mean that the additional cost of reducing emissions would be greater than the additional benefits gained from reducing emissions. Conversely, emitting more than this efficient level would mean that the additional benefits gained from emitting less would be greater than the additional cost of emitting less. Therefore, the efficient level of carbon emissions is where the marginal benefit equals the marginal cost.

Conceptually, the Efficient Level of Carbon Emissions Is the Level