Market-Oriented Environmental Tools _______ for Firms to Take the Social

Multiple Choice

Market-oriented environmental tools _______ for firms to take the social costs of pollution into account and _______ in reacting to these incentives.

A) draw distinctions; lower the social costs incurred
B) lack incentives; prohibit firms from having flexibility
C) create incentives; allow firms some flexibility
D) specify particular technology; lower the social costs incurred