A pollution tax is:

Name: A pollution tax is:
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Question

A pollution tax is:

Quizplus · Accepted Answer

A pollution tax is a specific tax per unit of pollution discharged, aimed at reducing the amount of pollution released into the environment. This tax makes it more expensive for firms to pollute, and thus provides an economic incentive to reduce pollution levels. It's not a positive externality or a tax on pollution control equipment. It’s not a negative externality itself, as it is not the cause of the pollution, but rather an attempt to reduce it.

A Pollution Tax Is