A tax levied on each unit of pollution is
A)a income tax.
B)a emissions fee.
C)a flat tax.
D)an international tax.

Question

Quizplus · Accepted Answer

A tax levied on each unit of pollution is known as an emissions fee. This is a market-based approach to reducing pollution by making polluters pay for the negative externality they impose on society. It provides an economic incentive for firms to reduce pollution by making it more expensive to pollute, while also generating revenue that can be used to fund environmental programs or be returned to taxpayers as a rebate.

A Tax Levied on Each Unit of Pollution Is