Which of the following would most likely lead to excessively high costs of pollution regulation?

Question

Quizplus · Accepted Answer

The use of regulations can lead to excessively high costs of pollution regulation because it may not take into account the specific circumstances of each firm and may impose a one-size-fits-all approach. This can result in some firms facing very high compliance costs, which can impede their ability to operate efficiently and remain competitive. In contrast, emissions taxes and marketable pollution permits provide more flexibility for firms to find the most cost-effective ways to reduce pollution, which can lead to lower overall costs of regulation. Excise taxes are not typically used to regulate pollution, so they would not be relevant to this question.

Which of the Following Would Most Likely Lead to Excessively