The most efficient way to get firms to reduce pollution is to

Question

Quizplus · Accepted Answer

Making firms pay for the social costs of production through taxes or permits would create an incentive for firms to reduce pollution as it would become more expensive to pollute. This would give firms the flexibility to determine the most efficient method to reduce pollution, such as investing in cleaner technology or changing their production processes. Options A and B are not ideal as they may be too punitive and can result in economic harm, and option D may not be as effective as firms and consumers may not prioritize reducing pollution unless there is a direct cost associated with it.

The Most Efficient Way to Get Firms to Reduce Pollution