In the United States, all environmental laws set environmental risk at a level where the MSB equals the MSC.

Question

Quizplus · Accepted Answer

Environmental laws in the United States do not always set environmental risk at a level where the MSB (marginal social benefit) equals the MSC (marginal social cost). Many environmental regulations aim to reduce the negative externalities caused by economic activity, which may involve setting stricter standards than would be necessary to achieve a balanced MSB and MSC. Additionally, some environmental regulations may be less stringent than would be required to achieve a balanced MSB and MSC, due to political or economic considerations.

In the United States, All Environmental Laws Set Environmental Risk