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How may price discrimination play a role in achieving carbon emission reduction?

How may price discrimination play a role in achieving carbon emission reduction?

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Answer #1

Price discrimination can help achieve carbon emission reduction by charging higher prices for goods leading to high carbon emissions and lower prices for goods leading to low carbon emissions.

This will make consumers switch to lower priced and thus lower carbon emitting products, thereby reducing overall carbon emissions in the economy.

For eg. CNG is cheaper than petrol

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