Which of the following is a market incentive to discourage pollution?

Question

Quizplus · Accepted Answer

Emission charges create a market incentive for companies to reduce pollution by charging them for the amount of pollution they emit. This gives them a financial reason to find ways to reduce their emissions. User charges are similar, in that they charge users based on the amount of a resource they consume, such as water or electricity, which can encourage users to conserve these resources and reduce pollution. Government regulations and command-and-control options, on the other hand, do not create a market incentive and can be less effective in achieving pollution reduction. The greenhouse effect is a natural phenomenon that is not directly linked to market incentives for pollution reduction.

Which of the Following Is a Market Incentive to Discourage