Both emissions taxes and tradable emissions permits:
A)are efficient cost-minimizing methods of pollution reduction.
B)work only if they are coupled with environmental standards.
C)encourage more pollution.
D)are usually less effective than are environmental standards.

Question

Quizplus · Accepted Answer

Both emissions taxes and tradable emissions permits are designed to create a market-based incentive for polluters to reduce emissions in the most efficient and cost-effective way possible. This makes them efficient cost-minimizing methods of pollution reduction. They do not encourage more pollution and can be effective without being coupled with environmental standards. In fact, some argue that they are more effective than environmental standards because they provide a direct economic incentive for polluters to reduce emissions, whereas standards rely on enforcement and compliance.

Both Emissions Taxes and Tradable Emissions Permits