Liability Laws Are an Effective Way to Incentivize Efficient Pollution

question 21

Multiple Choice

Liability laws are an effective way to incentivize efficient pollution solutions when

• A) relatively few parties are involved.
• B) causal linkages are clear.
• C) damages are easy to measure.
• D) all of the above.

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Definitions:

Oil And Gas

Natural resources that are extracted from the Earth and used primarily for energy and as raw materials in the production of chemicals.

Coal

A combustible black or brownish-black sedimentary rock formed from ancient plant matter, used primarily for electricity generation and steel production.

Oil Shale

Sedimentary rock that contains significant amounts of organic material in the form of kerogen, which can be converted into crude oil through heating.

Energy Resource

Any material or phenomenon that can be used directly or converted into other forms of energy to perform work.