An effluent fee induces a polluter to
A) increase his or her profits.
B) reduce waste discharge.
C) eliminate pollution entirely.
D) overspend on pollution reduction to the point where profits disappear.
E) stop production.

Question

Quizplus · Accepted Answer

The purpose of an effluent fee is to charge a polluter for the amount of pollution they emit into the environment. The fee is intended to provide an economic incentive for the polluter to reduce their waste discharge, as this would lower their costs. Therefore, the best choice is B because an effluent fee would induce a polluter to reduce their waste discharge.

An Effluent Fee Induces a Polluter to