If pollution is bad, why do we still use pollution-causing resources such as coal and oil to generate electricity?
A) Governments lack the political will to enforce the use of pollution free resources.
B) The cost of using pollution free resources to generate power in many circumstances is much higher than generating that same power through conventional pollution-causing means.
C) Pollution is only a private cost.
D) The transaction costs of pollution is too low.
Answer: B
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