It is suggested that pollution-control policy based on emission standards is likely to provide incentives for firms

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It is suggested that pollution-control policy based on emission standards is likely to provide incentives for firms (polluters) to hide technological advances on pollution control from regulatory authorities. What could possibly explain this kind of behavior? In other words, what is there to gain by hiding technological advances? Can you provide a real-world example that supports this situation? Hint: consider as a case the Corporate Average Fuel Economy (CAFE) standards in the United States' auto industry!

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