(Last Word) Because there are so many sources of carbon dioxide, making monitoring difficult and costly, many economists
A) prefer a carbon tax to cap-and-trade for reducing carbon dioxide emissions.
B) prefer cap-and-trade to a carbon tax for reducing carbon dioxide emissions.
C) believe that cap-and-trade and a carbon tax are both costly but should be implemented to reduce carbon dioxide emissions.
D) believe that neither cap-and-trade nor carbon taxes can effectively reduce carbon dioxide emissions.

Question

Quizplus · Accepted Answer

Economists generally prefer a carbon tax as it sets a clear price on carbon emissions, making it easier for companies to plan and invest in clean energy solutions. Cap-and-trade can be difficult to administer and monitor, and can result in price volatility for carbon allowances. A carbon tax also provides a more predictable revenue stream for governments.

(Last Word) Because There Are So Many Sources of Carbon