Essay > Pennsylvania State UniversityECON 425abatment discussion.100% score

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Which is a better way to solve environmental problems: a conventional approach or an economic approach? Why? Be sure to use economics in your explanation. Feel free to use an example from a specific... industry. The convention approach also known as command and control is a method use by the government to set target and ways by which an environmental pollution can be met. This approach does not offers no incentives to further improve the quality of the environment beyond the standard set by the government. Once firms has satisfied their pollution target, they have zero incentives to do better. So they might not achieved an efficient outcome where their marginal social cost equate marginal social benefit. These regulations are made by the legislators and other responsible bodies like Environmental Protection Agency (EPA) that might be subject to compromise. The inflexibility of such regulations can be inefficient where there are better solutions to the problem. [Show More]

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