Corrective taxes are preferred over regulations to deal with pollution because corrective taxes
A)reduce pollution at a lower cost to society.
B)raise revenue and reduce pollution simultaneously, although efficiency is reduced.
C)obtain faster results than regulations.
D)allow for an accurate monitoring of pollution levels.

Question

Quizplus · Accepted Answer

Corrective taxes provide a financial incentive for polluters to decrease their pollution levels, which can be achieved at a lower cost to society than implementing and enforcing regulations. Regulations can also face bureaucratic delays and resistance from businesses, while corrective taxes can be implemented more quickly and directly address the issue of pollution. Additionally, corrective taxes can potentially raise revenue for the government while still reducing pollution. However, it should be noted that there may be some reduction in efficiency with a tax-based approach.

Corrective Taxes Are Preferred Over Regulations to Deal with Pollution