Incentive-based regulations provide polluters no incentive to reduce pollution and are thus not used often.
A) True
B) False
C) Uncertain

Question

Quizplus · Accepted Answer

Incentive-based regulations, such as taxes on pollution or tradable pollution permits, actually provide economic incentives for polluters to reduce their emissions. These mechanisms are designed to encourage pollution reduction in a cost-effective manner.

Incentive-Based Regulations Provide Polluters No Incentive to Reduce Pollution and Are