What is the main advantage of using market-based schemes for reducing pollution over direct regulatory controls? Using the market-based policies
◦ leads to greater fairness in the distribution of resources.
◦ minimizes the difference between total cost and total benefit.
◦ improves the moral fibre of producers and consumers.
◦ leads to a more efficient use of scarce resources.
◦ maximizes the difference between marginal cost and marginal benefit.