Emissions fees are designed to make polluting more costly, thereby encouraging firms that can reduce emissions at a lower cost to do so, while firms for which reduction is more expensive may opt to pay the fee. This creates a financial incentive for pollution control without mandating specific actions for all firms.

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Emissions Fees

Question 35

Multiple Choice

Emissions fees:

A) encourage firms with high cleaning costs to pay the fee while firms with low cleaning costs clean emissions
B) dissuade all firms from polluting for ethical reasons
C) are being phased in on public toilets to comply with federal standards to lower the solid waste stream
D) encourage all firms to increase emissions so that paying the emission fee is more financially desirable than cleaning emissions

Correct Answer: