An advantage offered by pollution taxes that is NOT offered by command-and-control policies is that
A) under pollution taxes pollution is usually reduced to zero.
B) a pollution tax decreases the price of the polluting good.
C) under pollution taxes, the government receives tax revenues that may be used to clean up pollution.
D) pollution taxes decrease the demand for the good generating the pollution.

Question

Quizplus · Accepted Answer

Pollution taxes generate revenue for the government that can be used for pollution control measures. Command-and-control policies do not generate any revenue.

An Advantage Offered by Pollution Taxes That Is NOT Offered