Taxes on polluting firms have
A)been tried, but not successfully.
B)been successful in Germany in reducing water pollution.
C)resulted in bankruptcy of the affected firms.
D)never been tried to see if they work.

Question

Quizplus · Accepted Answer

Taxes on polluting firms have been successfully implemented in Germany in reducing water pollution. This approach is known as the polluter-pays principle and has been effective in several countries in reducing pollution levels. However, it is important to implement such taxes carefully to avoid bankrupting the affected firms.

Taxes on Polluting Firms Have