Which of the Following Is True When Emission Charges Are

Multiple Choice

Which of the following is true when emission charges are compared to emission standards?

A) Polluters pay both emission charges and abatement cost charges under a policy of emissions charges, but only pay for abatement costs when emission standards are in place.
B) Polluters automatically reduce their emissions when abatement costs decline under a policy of emissions charges, but do not reduce their emissions automatically when standards are in place and abatement costs decline.
C) Polluters will realize bigger pollution control cost reductions from R&D efforts under a policy of emission charges than under a policy of emission standards.
D) all of the above.