Which Is NOT an Advantage of Emissions Fees Over Standards

question 19

Multiple Choice

Which is NOT an advantage of emissions fees over standards?

• A) Fees can give a firm the incentive to reduce emissions below the standard when new technology allows.
• B) Fees can reduce the cost of attaining some goal level of emissions when firms all have the same abatement costs.
• C) Fees can reduce the cost of attaining some goal level of emissions when firms have different abatement costs and different standards can be assigned to different firms.
• D) Fees can reduce the cost of attaining some goal level of emissions when firms have different abatement costs and different standards cannot be assigned to different firms.
• E) Fees may provide an incentive for a firm to investigate emissions-reduction technology that will reduce emissions below existing standards.

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