The objective of imposing a higher pollution tax is to
A) ensure firms have pollution charge credits for all reduced emissions.
B) provide incentive for firms to maintain regulation emission levels.
C) provide adequate incentive for firms to reduce their emissions by more.
D) ensure firms must pay the pollution charge for all reduced emissions.

Question

Quizplus · Accepted Answer

The objective of imposing a higher pollution tax is to make it more costly for firms to pollute, thereby providing them with a financial incentive to reduce their emissions beyond the current levels to minimize their tax burden.

The Objective of Imposing a Higher Pollution Tax Is to