Question

Why might big multinational energy companies like Exxon be seriously dismayed by governments passing laws to cut significant carbon dioxide emissions?

Select one: a. energy consumers would switch from using oil to coal

b. energy companies would need to spend more money on lobbying to influence the final version of the law

c. energy company revenues and profits could be threatened

d. energy consumers would switch from oil to gas

Answer 1

C. Energy company revenues and profits could be threatened.

Explanation :

Big multinational energy companies like Exxon would be seriously dismayed by government passing laws to cut significant carbondioxide emissions as energy company's revenues and profits could be threatened because such laws passed by the government would result in a switch to other sources of energy generation , other than fossil fuels. This would impact on the revenues of company and enable companies to alter their methods of production by changing the methods. As a result, cost incurred by the company would significantly increase thereby adversely threatening profits and revenues of the energy company.