Command-and-control policies generally reduce pollution more than pollution taxes do.

Question

Quizplus · Accepted Answer

Pollution taxes provide a financial incentive for companies to reduce their pollution levels, whereas command-and-control policies rely on regulations and mandates. Pollution taxes allow companies to find the most cost-effective ways to reduce their pollution levels, while command-and-control policies may lead to only the minimum amount of reduction required by law. Therefore, pollution taxes are often considered more flexible and efficient at reducing pollution levels.

Command-And-Control Policies Generally Reduce Pollution More Than Pollution Taxes Do