An advantage emission taxes and permits have over direct controls is that the former
A)works well even if pollution output cannot be accurately measured.
B)can respond quickly to new information about the dangers of particular pollutants.
C)makes it in firms' interests to reduce pollution in the most efficient manner possible.
D)reduces pollution to zero.

Question

Quizplus · Accepted Answer

Emission taxes and permits incentivize firms to find the most cost-effective ways to reduce pollution, as they can save money by lowering their emissions, thus making it in their interest to reduce pollution efficiently.

An Advantage Emission Taxes and Permits Have Over Direct Controls