Command-and-control policies lead to higher prices for consumers than pollution taxes do.

Question

Quizplus · Accepted Answer

Command-and-control policies require firms to use specific technologies or take certain actions, which can be more expensive than pollution taxes that provide an incentive for firms to find cost-effective ways to reduce pollution. As a result, these policies can lead to higher costs for firms that are then passed on to consumers in the form of higher prices.

Command-And-Control Policies Lead to Higher Prices for Consumers Than Pollution