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Choice of MBIs
Economic instruments or MBIs influence decision-making in such a way that the chosen alternatives would lead to an environmentally more desirable situation than in the absence of the instrument.
Hence, economic instruments allow the polluting agents the freedom to opt for instruments in a way they themselves think are most beneficial to abate pollution.The presence of a number of policy instruments makes it difficult to choose the correct one.
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Q. Why does government undertake an economic activity? If ever an activity has large externality or spill over and includes a large number of people, it may be found better th
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