Which of the following is a main political objection against using the market to reduce pollution?
A)Pollution charges and cap-and-trade schemes raise prices and lower consumer welfare.
B)Cap-and-trade redistributes income from less-efficient polluters to more-efficient polluters.
C)Firms already pay a high corporate tax.
D)Consumers do not have the same built in tax loopholes as firms.

Question

Quizplus · Accepted Answer

The main political objection against using the market to reduce pollution is that pollution charges and cap-and-trade schemes raise prices and lower consumer welfare. This objection is based on the belief that market-based policies will result in higher prices for goods and services, as firms pass on the costs of reducing pollution to consumers. Critics argue that such policies will disproportionately affect low-income households who spend a larger share of their income on basic goods and services.

Which of the Following Is a Main Political Objection Against