Which of the following is true regarding pollution charges?
i.They force a polluter to pay a price for its pollution.
ii.They are based on the marginal external cost of pollution.
iii.The fee that produces the efficient amount of pollution is easily determined.
A) i only
B) i and ii
C) ii and iii
D) i, ii, and iii
E) i and iii

Question

Quizplus · Accepted Answer

i. is true as pollution charges impose a price on polluters for their emissions.
ii. is true as pollution charges aim to make polluters pay for the marginal external cost of their pollution, which is the cost that is imposed on society as a whole (such as healthcare costs or environmental damage).
iii. is not always true, as it can be difficult to determine the exact fee that produces the efficient level of pollution.

Which of the Following Is True Regarding Pollution Charges