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You remember the six incentive diagrams, don't you?They laid out the incentives offered by six different policy regimes for development and adoption of new pollution
You remember the six incentive diagrams, don't you?They laid out the incentives offered by six different policy regimes for development and adoption of new pollution control technology.The best incentive was provided by a flexible emissions fee.One of the worst incentives was provided by a flexible abatement subsidy.In a couple of sentences, explain why the incentive offered by the flexible abatement subsidy is so bad in comparison to the incentive offered by the flexible fee.
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