Chapter 12, Problem 5SCQ

Consider two approaches to reducing emissions of ${\text{CO}}_{\text{2}}$ into the environment from manufacturing industries in the United States. In the first approach, the U.S. government makes it a policy to use only predetermined technologies. In the second approach, the U.S. government determines which technologies are cleaner and subsidizes their use. Of the two approaches, which is the command-and-control policy?