Question

Why might the use of emission standards, and fines for exceeding those standards, not ensure that the socially efficient pollution level is attained?

Answer 1

The system of command and control in the form of emission standards and fines for exceeding the standards is generally not successful to ensure that the socially efficient level of pollution is achieved. The system of command and control might not work because people have the tendency to breach these rules and regulations which will never lead to a socially efficient level of pollution. Taxes work better to achieve socially efficient level of pollution standard.