Which of the following would NOT be a consequence of switching entirely from fixed-percentage pollution reduction regulations to either a pollution tax or pollution permits?
A) The total cost of achieving a given reduction in pollution would fall.
B) The distribution of pollution reduction effort among firms would change.
C) Government revenue would rise.
D) The total amount of pollution emitted would,necessarily,rise.
E) The largest reductions in pollution emissions would come from those firms best able to reduce pollution.

Question

Quizplus · Accepted Answer

If the switch is made to either a pollution tax or pollution permits, there will still be an incentive for firms to reduce pollution to avoid paying the tax or to stay within their permit limit. Therefore, the total amount of pollution emitted would not necessarily rise.

Which of the Following Would NOT Be a Consequence of Switching