Figure 19.5.1
-Refer to Figure 19.5.1 above. If the pollutant at issue is carbon dioxide, CO₂, the typical response suggested by policy analysts is:

Question

Figure 19.5.1 -Refer to Figure 19.5.1 above. If the pollutant at issue is carbon dioxide, CO₂, the typical response suggested by policy analysts is:

Quizplus · Accepted Answer

A carbon tax is the most appropriate policy response for carbon dioxide emissions as it places a price on each unit of emissions, providing incentives for households and firms to reduce their emissions. An effluent fee and an external fee are more appropriate for non-carbon pollutants, while a subsidy would encourage rather than discourage emissions.

Figure 19.5.1 -Refer to Figure 19.5.1 Above. If the Pollutant at Issue