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Homework answers / question archive / Achieving the desired air quality standards and emission of greenhouse gases (or even particulate matter and sulfur oxides) requires enforcement of emission standards through an appropriate regulatory framework

Achieving the desired air quality standards and emission of greenhouse gases (or even particulate matter and sulfur oxides) requires enforcement of emission standards through an appropriate regulatory framework

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Achieving the desired air quality standards and emission of greenhouse gases (or even particulate matter and sulfur oxides) requires enforcement of emission standards through an appropriate regulatory framework. Regulatory agencies such as the EPA may enforce them for stationary sources of pollution (emissions) and/or mobile sources like automobiles, mass transit, buses, trucks, and ships. These "command and control" methods require businesses to take necessary pollution abatement actions. The emission control standards imposed may become increasingly tighter with time to facilitate continued improvements in air quality. Would you advocate a direct "command and control" approach, or prefer to use other economic policy instruments to achieve those same emission levels? Or combine both? Please explain reasons for your choice.

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Under the command and control method, the government will set the limit for the different firms for the emission of pollution and make the law for the same and fines will be charged if anyone is not following the law.

The government can use some other methods also to control pollution such as:

(a) Tax: Government can impose a pollution tax on different firms based on the amount of pollution they are doing.

(b) Permits: Government can also use the tools of permit and every firm is required to take permits that sets the limit for the emission of pollution by that firm.

(c) Subsidies: Government can provide subsidies to the firms if they are doing no or less pollution from their production process.

The government can opt any of the policy or the combination of both the policy by comparing the marginal cost incurred for the policy implementation with the marginal benefit derived from the policy and should opt that policy which equalize the marginal cost with the marginal benefit.

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