A policy is cost-effective if it
A. achieves a given amount of environmental improvement at the least possible cost.
B. achieves a given amount of environmental improvement at the highest possible cost.
C. is always efficient.
D. none of the answers are correct.
Fairness:
A. is a matter of morality (道德), not science.
B. A perception of unfairness may cause a policy to lose public support.
C. There is concern that racial minorities and poor people are exposed to more damages from pollution.
D. No answer is correct.
E. All answers are correct.
Incentives for Technology:
A. New inventions are public goods.
B. Inconsistent policies encourage new technology.
C. Technological change shifts the marginal abatement cost function upward.
D. All answers are correct.
Decentralised Policies:
A. Policies that allow individuals to work out the problem.
B. The parties directly affected have incentives to find a solution.
C. The parties directly affected also usually know best the costs and damages
D. All the answers are correct
E. No answer is correct.
Liability law:
A. Find who should pay for damages.
B. Externalizes (内化) what would otherwise be considered internal costs
C. Transaction costs are useful.
D. All answers are correct.
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