Command-and-control policies are undesirable ways of reducing pollution because the means of abatement they mandate may not be efficient for all firms.

Question

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Command-and-control policies have been criticized for not taking into account the differences in firms' abilities to reduce pollution. The mandated means of abatement may not be the most cost-effective for all firms, which can result in unnecessary costs and reduced incentives for innovation. Market-based approaches, such as pollution taxes or cap-and-trade systems, can provide better incentives for firms to reduce pollution in the most efficient way.

Command-And-Control Policies Are Undesirable Ways of Reducing Pollution Because the Means