Pollution control programs can lead to an adverse redistribution of income when
A) low-income neighborhoods are in close proximity to industrial pollution.
B) polluting goods and services play a bigger role in the budgets of the poor than of the rich.
C) such programs result in increased employment opportunities for low-income individuals.
D) the total cost of such programs is paid almost entirely by upper-income groups.
E) the social benefits of control programs fall disproportionately on the poor.

Question

Quizplus · Accepted Answer

Pollution control programs may result in an increase in costs for polluting goods and services, which may disproportionately affect low-income individuals who allocate a larger portion of their budget towards these goods and services. This can lead to an adverse redistribution of income as the poor bear a greater burden of the costs.

Pollution Control Programs Can Lead to an Adverse Redistribution of Income