According to the Dual-Control Approach, States Set Abatement Levels for Existing

question 25

Multiple Choice

According to the dual-control approach, states set abatement levels for existing stationary sources below the EPA-administered standard for new sources. The "new source bias" associated with this approach is that

• A) firms have an incentive to shut down their businesses
• B) states have an economic motive to set very stringent standards for existing sources
• C) firms have an incentive not to start new construction and instead remain in older, existing facilities
• D) the EPA has an incentive to set lenient standards for new sources

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