Pollution taxes are more efficient in cleaning up the environment than direct controls.What role is there for direct controls?
A)They are useful standby mechanisms.
B)They are useful if it is decided to prohibit the substance altogether.
C)They are useful where dependable metering devices are not available or prohibitively costly to install.
D)All of the above are true.

Question

Quizplus · Accepted Answer

All of the given choices are true. Direct controls have their own advantages and may be necessary in certain situations. For example, if a substance is deemed too hazardous, it may be necessary to prohibit its use entirely rather than relying on a pollution tax. In addition, direct controls may be necessary in situations where dependable metering devices are not available or prohibitively costly to install. Finally, direct controls can be useful standby mechanisms in case the proposed pollution tax scheme fails to achieve its desired results.

Pollution Taxes Are More Efficient in Cleaning Up the Environment