Explain why the level of emissions control R* in Figure 16.3 is economically efficient. Why would the levels of abatement given by RL and RH result in inefficiency? What kinds of inefficient trades would be occurring at these levels of abatement?
Figure 16.3
Optimal Pollution Abatement

Transcribed Image Text:

MC Marginal benefit, cost I MB RH 100 Percent Reduction I Emlsslons