Explore BrainMass

Explore BrainMass

    Why Might Regulating Externalities Be a Bad Idea?

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Why might regulating externalities be a bad idea compared with other alternatives?

    © BrainMass Inc. brainmass.com March 4, 2021, 6:23 pm ad1c9bdddf

    Solution Preview

    The main idea is that standards are less efficient than taxes and pollution rights because they are not responsive to differences across firms or across regions. Also, ...

    Solution Summary

    This solution is a very simple and short answer to the question posed. Specifically, it explains why regulation of externalities is a bad idea and provides two specific alternatives.