One alternative to command and control techniques that economists recommend to reduce pollution or the inefficiencies of other externalities is

Question

Quizplus · Accepted Answer

Taxes and subsidies are market-based solutions that rely on creating financial incentives to encourage individuals and firms to adopt more environmentally-friendly practices. By adding a tax to polluting activities, for example, firms will have an added financial incentive to reduce their pollution levels. Meanwhile, subsidies provide a positive financial incentive for firms to adopt more environmentally-friendly practices. Both tools rely on market mechanisms, rather than command and control techniques, to reduce pollution or other externalities.

One Alternative to Command and Control Techniques That Economists Recommend