Which of the following is a market-based approach to protecting the environment?

Question

Quizplus · Accepted Answer

All of the options listed are market-based approaches to protecting the environment. Assessing green taxes on pollution produced by a factory creates a financial incentive to reduce pollution by increasing the cost of polluting. Tax breaks for environmentally favorable actions create an incentive for companies to take actions that benefit the environment. Permit trading allows companies that emit fewer pollutants to sell their unused pollution permits to companies that emit more pollutants. All of these approaches use market forces to encourage environmentally friendly behavior.

Which of the Following Is a Market-Based Approach to Protecting