Since restored historic buildings convey a positive externality, local governments may choose to
A)regulate the demolition of them.
B)provide tax breaks to owners who restore them.
C)increase property taxes in historic areas.
D)Both a and b are correct.

Question

Quizplus · Accepted Answer

Both options A and B are correct. Regulating the demolition of historic buildings helps to preserve the cultural heritage and helps maintain local character. Providing tax breaks to owners who restore historic buildings incentivizes owners to invest in the preservation of these buildings and enhances the surrounding community. Option C is incorrect because increasing property taxes in historic areas may discourage owners from restoring these buildings and may result in them falling into disrepair.

Since Restored Historic Buildings Convey a Positive Externality, Local Governments