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

Question

Quizplus · Accepted Answer

Corrective taxes incentivize polluters to reduce their emissions in the most cost-effective way possible, whereas regulations impose a specific set of actions to reduce pollution that may not be the most efficient or cost-effective. Therefore, corrective taxes reduce pollution at a lower cost to society.

Why Are Corrective Taxes Preferred Over Regulations to Deal with Pollution