To correct for the social impact of pollution, the government should levy a per-unit tax

Question

Quizplus · Accepted Answer

Levying a per-unit tax according to the economic damage of the pollution is the most effective option as it ensures that polluters who cause more harm to society pay a higher tax. This incentivizes them to reduce their pollution levels and gives them an economic advantage over other polluters who may be smaller but cause more damage to society. It also ensures that the tax burden is more fairly distributed among all polluters based on their impact.

To Correct for the Social Impact of Pollution, the Government