Taxes on emissions have
A)led to firms discovering costless methods of extraction of pollutants from liquid discharges.
B)led to increased waste disposal of pollutants.
C)led to voluntary reduction in emissions to avoid the taxes.
D)not been an efficient penalty.Firms continue to pollute.

Question

Quizplus · Accepted Answer

Taxes on emissions have been effective in encouraging firms to reduce their emissions voluntarily in order to avoid the taxes. This can lead to investments in cleaner technologies or more efficient processes to reduce emissions. However, the effectiveness of the tax depends on its level and enforcement. If the tax is too low or not strictly enforced, firms may continue to pollute.

Taxes on Emissions Have