Firms may have different marginal costs for abatement.
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A. Different age technology between firms
b.different raw materials used during the manufacturing process
c.different outputs being produced
The technology standard provides an incentive to entrepreneurs
To develop innovative ideas in the field of pollution control.
In terms of innovation, emission standards are no encouragement to create new ones.
Technology to control pollution
The incentive to invent is provided by output-based standards
1.emissions for each unit of input
b.Inputs required per unit output
c.Overall level of output
d.both the first and second answers
This increases the incentives for polluters and politicians to make their voices heard
Delay the effective date of regulations
The b.is intended to encourage the industry of pollution control.
Inventing new methods to comply with environmental standards
The idea that standards are set at a level which is unrealistic for the recipient.
Current technology levels
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