Emissions from large pulp and paper factories create health risks for pedestrians and discomfort for residents of the city of Ashdown, Arkansas. In this case:

Question

Quizplus · Accepted Answer

The externality created by the emissions can be solved by imposing a specific tax on the pulp and paper factories. The tax would increase the cost of production for the factories and incentivize them to invest in technologies to reduce their emissions. This would lead to a reduction in the negative impact on the health of pedestrians and the discomfort of residents.

Emissions from Large Pulp and Paper Factories Create Health Risks