Abatement Subsidies Can Increase Total Emissions When

question 12

Multiple Choice

Abatement subsidies can increase total emissions when

• A) the pollution control technology supported by the subsidy is outdated
• B) the number of polluting firms entering the industry increases to gain the subsidies
• C) marginal abatement costs decrease while marginal damages remain the same
• D) marginal damages decrease while marginal abatement costs remain the same

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Definitions:

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The state in which a company’s strategies, activities, and resources are cohesively directed towards achieving its goals, often emphasizing a unified direction and purpose.

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The general public’s positive perception of a person, company, brand, or product, based on their actions, ethics, and past performance.

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