Compared to an abatement equipment subsidy, a per-unit subsidy on abatement might be less disruptive to the market because it is defined without any influence as to how abatement is achieved.

Question

Quizplus · Accepted Answer

A per-unit subsidy on abatement provides a financial incentive for companies to reduce emissions without dictating the specific technologies or methods they must use. This approach can be less disruptive to the market than an abatement equipment subsidy, which could favor certain technologies over others and create an uneven playing field.

Compared to an Abatement Equipment Subsidy, a Per-Unit Subsidy on Abatement