Taxes are a more effective method of controlling pollution than the command-and-control approach in part because:

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Taxes and subsidies create financial incentives for firms to innovate and find cost-effective ways to reduce pollution. They also provide flexibility for firms to decide how to comply with the regulations, rather than mandating specific actions as the command-and-control approach does. Standards may be less effective because they do not provide the same financial incentives for innovation and efficiency, and they can be too rigid in their requirements.

Taxes Are a More Effective Method of Controlling Pollution Than