In most cases,pollution taxes are more efficient than command-and-control policies at achieving a desired reduction in the level of pollution because
A) they can reduce the level of pollution at a lower cost to society.
B) the market price and quantity are not affected.
C) they make the firm pay for the pollution that they generate.
D) all of the above

Question

Quizplus · Accepted Answer

Pollution taxes are more efficient because they provide an economic incentive for firms to reduce pollution at the lowest cost possible, unlike command-and-control policies that might not account for the varying costs of pollution reduction across different firms.

In Most Cases,pollution Taxes Are More Efficient Than Command-And-Control Policies