One Approach to Pollution Control Is Incentive-Based Regulation

One approach to pollution control is incentive-based regulation. In this tactic:
1) industries adopting specific pollution control methods recommended by the government are rewarded.
2) industries are encouraged to emit an amount of pollution that is economically most desirable for that company.
3) green taxes are levied on industries that represent an emission charge on polluters.
4) pollution control laws establish emission targets and industries are provided enticements to reduce emissions.

A) 1
B) 2
C) 3
D) 4
E) 2 and 3