Unlike command regulation,environmental taxes allow polluters to forgo,change,or control production in any way that reduces compliance costs.

Question

Quizplus · Accepted Answer

Environmental taxes provide economic incentives for polluters to reduce their emissions by allowing them to choose the most cost-effective way to comply with the tax. This may include reducing pollution through changes in production, investing in technology to improve efficiency, or changing the inputs of their production process. Therefore, unlike command regulation, environmental taxes do not mandate specific production practices, but rather let firms find their own way to reduce pollution in a cost-effective manner.

Unlike Command Regulation,environmental Taxes Allow Polluters to Forgo,change,or Control Production