Emissions fees are preferable to emissions standards because

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    fees give a firm strong incentive to install new equipment that would allow it to reduce its emissions even further below the standards.
     with fees, total emissions are reduced at a lower cost because firms with lower abatement costs will reduce emissions further than firms with higher abatement costs.
     emissions standards provide an incentive for a firm to install new equipment to meet the standards but no incentive to work further to reducing emissions once the standards have been met.
     all of the above.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

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all of the above.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)



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