A country has several factories that emit sulfur dioxide. The main methods that the government can use to overcome the accompanying environment externalities include all of the following EXCEPT
A) cap-and-trade.
B) mandating clean technology.
C) subsidies.
D) taxes.

Question

Quizplus · Accepted Answer

Subsidies are typically used to encourage positive externalities, not to overcome negative externalities like pollution.

A Country Has Several Factories That Emit Sulfur Dioxide