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The Government Has Decided to Impose a Pollution Tax on Coal

Question 25

Multiple Choice

The government has decided to impose a pollution tax on coal burning power plants in an attempt to reduce harmful emissions. The new tax will cost the 20 largest industrial carbon emitters $6 million annually. In terms of reduced emissions, the annual tax benefits are valued at
$20 per person. 100 million people are directly affected by emissions from these plants. The total annual cost of this tax is _______ , while the total annual benefit to society is _______.


A) $60 million, $2 trillion
B) $60 million, $1 trillion
C) $120 million, $1 trillion
D) $120 million, $2 trillion

Correct Answer:

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