Which of the following require firms to pay to pollute?
(i)corrective taxes
(ii)tradable pollution permits
(iii)pollution regulations
A)(i) only
B)both (i) and (ii)
C)(iii) only
D)both (ii) and (iii)

Question

Quizplus · Accepted Answer

Corrective taxes and tradable pollution permits both require firms to pay to pollute. Corrective taxes impose a cost per unit of pollution, while tradable permits allow firms to buy and sell the right to emit a certain amount of pollution. Pollution regulations, on the other hand, typically set limits or standards without necessarily involving a payment.

Which of the Following Require Firms to Pay to Pollute