Explain how emission standard and technology standard are used or set as an exercise of police powers.

Explain what are the ” Police powers of the state” and what they allow the state(i.e. government) to do. Explain what an emission standard is and what a technology standard is, and how they are used or set as an exercise of police powers. Describe why technology standards (1) eliminate any incentive for technology advance or improvement and (2) cause total social abatement cost for the same level of environmental quality or abatement to be higher than the minimum cost. Describe why a cap and trade or permit system based upon emission standards. (1) Provide an incentive for technological advance or improvement and (2) cause total social abatement cost for the same level of environmental quality or abatement to be closer to the minimum cost. (Hint: What are the cost of technological advance, and what are the benefits of technological advance).

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