In some cases,why might pollution permits be better than a corrective tax
A)Pollution permits allow for a market solution while a corrective tax does not.
B)Pollution permits generate more revenue for the government than a corrective tax.
C)Pollution permits are never preferred over a corrective tax.
D)Pollution permits can have a maximum level of pollution set on them by the government.

Question

Quizplus · Accepted Answer

Pollution permits can have a maximum level of pollution set on them by the government, which helps ensure that the overall level of pollution stays within safe limits. With a corrective tax, there is no limit on the amount of pollution that can be emitted as long as the tax is paid. This makes pollution permits a more effective tool for addressing environmental externalities.

In Some Cases,why Might Pollution Permits Be Better Than a Corrective