A tax levied on each unit of pollution is
A) an income tax.
B) a emissions fee.
C) a flat tax.
D) an international tax.

Question

Quizplus · Accepted Answer

A tax levied on each unit of pollution is known as an emissions fee. It is designed to discourage the production of pollutants by making it more expensive for companies to produce them. This type of tax is also known as a Pigouvian tax, named after the economist Arthur Pigou who first proposed its use as a way to address negative externalities such as pollution.

A Tax Levied on Each Unit of Pollution Is