Both pollution permits and corrective taxes are viewed as cost-effective ways to keep the environment clean.

Question

Quizplus · Accepted Answer

Both pollution permits and corrective taxes create economic incentives for individuals and companies to reduce their pollution levels in a cost-effective manner. Pollution permits limit the total amount of pollution that can be emitted, giving companies the flexibility to reduce their emissions in the most cost-effective way possible. Corrective taxes, on the other hand, impose a tax on each unit of pollution emitted, which incentivizes companies to reduce their pollution levels to avoid the tax. Both approaches can be effective in reducing pollution at the lowest possible cost.

Both Pollution Permits and Corrective Taxes Are Viewed as Cost-Effective