How do market oriented approaches to the environmental issues differ from command-and-control?

Answers



Market oriented approaches to environmental issues rely on market forces to determine the costs, processes, and outcomes associated with environmental protection. These approaches, such as emissions trading and pollution taxes, create incentives for firms to reduce emissions and reduce their environmental footprints.

Command-and-control is a type of regulation where mandates are put in place to regulate behavior and activities. It is often viewed as an uncomfortable trade-off between environmental protection and economic costs, as trade-offs must be made between improving environmental quality and allowing economic activities. Command-and-control does not promote choice or flexibility, as it is an all-or-nothing approach.

Market oriented approaches, on the other hand, create incentives for firms to reduce their environmental footprints by providing the economic benefits of reducing emissions and environmental risk, such as trading carbon offsets or using pollution taxes. This approach also allows for market forces to determine the cost and success of environmental protection, as firms have the freedom to choose their own course of action. This creates a more flexible and cost-effective approach to environmental protection than command-and-control, as market forces drive the need for efficiency and cost-savings.

Answered by longdavid

Create incentives to allow firms some flexibility in reducing pollution Pollution charge - tax imposed on the quantity of pollution that a firm emits

Answered by Brandon Robinson

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