Which of the following is an advantage to the pollution-rights approach to environmental quality?
A)Polluters are compelled to clean up completely.
B)Polluters have appropriate incentives to clean up.
C)This is a method of direct government regulation.
D)Compliance with legal guidelines is discretionary.

Question

Quizplus · Accepted Answer

The pollution-rights approach incentivizes polluters to clean up their act by making them pay for any pollution they emit beyond a certain limit. This creates a market for pollution rights and encourages polluters to adopt cleaner technologies or reduce their emissions so that they can sell their excess rights. This approach is more flexible than direct regulation and can result in cost-effective solutions to environmental problems. A is not true because even with the pollution-rights approach, it may not be possible to compel polluters to clean up completely. C is not an advantage because some may argue that direct government regulation is not always the most efficient way to regulate pollution. D is not an advantage because compliance with legal guidelines should not be discretionary; rather, it should be mandatory.

Which of the Following Is an Advantage to the Pollution-Rights