An example of an incentive-based regulation is the imposition of an excise tax on the production of chemicals to encourage chemical firms to reduce pollution.

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Quizplus · Accepted Answer

Incentive-based regulations, such as excise taxes on pollution-causing activities, are designed to encourage firms to reduce negative externalities like pollution by making it financially beneficial for them to do so.

An Example of an Incentive-Based Regulation Is the Imposition of an Excise