Asked by Vincent Zhang on Apr 26, 2024

verifed

Verified

According to most economists,

A) command-and-control regulations work better than incentive-based regulations.
B) incentive-based regulations work better than command-and-control regulations.
C) command-and-control regulations have about the same effectiveness as incentive-based regulations.

Incentive-based Regulations

Regulatory approaches that aim to encourage desired behaviors through incentives, contrasting with command-and-control policies.

Command-and-control Regulations

These are specific regulatory standards set by the government that dictate the limits for emissions, discharges, or other environmental controls that businesses must legally follow.

  • Analyze the effectiveness of command-and-control vs. incentive-based regulations in addressing environmental issues.
verifed

Verified Answer

BJ
Brisiadenisse JuarezalonsoApr 28, 2024
Final Answer :
B
Explanation :
Most economists believe that incentive-based regulations, such as emissions trading or pollution taxes, are more effective than command-and-control regulations, which specify particular technologies or levels of pollution control. This is because they create an economic incentive for firms to reduce pollution and allow for flexibility in how firms achieve their pollution reduction targets. In contrast, command-and-control regulations can be inflexible and costly for firms to comply with.