The costs of environmental regulation could be reduced without reducing environmental quality by:

Question

Quizplus · Accepted Answer

Marketable emissions permits allow for a market-based approach to reducing pollution. It incentivizes companies to reduce their emissions and rewards those who do. It also allows for more flexibility in meeting emissions targets, as companies can buy and sell permits as needed. This can ultimately lead to lower costs for both companies and the government, without reducing environmental quality. Relying less on pollution taxes (B) is not an effective solution as it can lead to higher costs for companies, and there is no guarantee that reducing taxes would result in more environmentally friendly practices. Enacting stricter environmental regulations (C) can be effective, but it may come with higher costs, which could be avoided or minimized by using marketable emissions permits. Using technology forcing (D) may also be effective in reducing environmental costs, but it may not be as feasible or cost-effective as using market-based approaches.

The Costs of Environmental Regulation Could Be Reduced Without Reducing