An emissions tax will:

Question

Quizplus · Accepted Answer

An emissions tax is designed to ensure that the marginal benefit of pollution is equal for all sources of pollution. By taxing polluters based on the amount of pollution they produce, the tax sets a price on pollution that reflects its true cost to society. This encourages all polluters to reduce their emissions to the point where their marginal abatement costs are equal to the tax, creating an efficient outcome that results in the lowest possible level of pollution.

An Emissions Tax Will