One advantage that a command-and-control policy has over a pollution tax is that
A) we will be able to accurately predict the amount of pollution that will occur.
B) it generates a lower level of pollution at a lower cost.
C) it encourages firms to use the most efficient abatement methods possible.
D) it will lower the prices of products produced by polluting firms.

Question

Quizplus · Accepted Answer

A command-and-control policy involves setting specific pollution limits for firms to comply with, which allows for accurate predictions of the amount of pollution that will occur. In contrast, a pollution tax relies on predicting the behavioral response of firms to changes in tax rates, which can be more difficult to predict.

One Advantage That a Command-And-Control Policy Has Over a Pollution