An increase in a tax per unit of polluted discharge will decrease the amount of pollution.

Question

Quizplus · Accepted Answer

This statement is a basic principle of environmental economics, known as the "polluter pays" principle. By increasing the cost of polluting, businesses and individuals have an incentive to reduce their pollution levels and find alternatives that are less harmful to the environment. This can lead to a decrease in the overall amount of pollution being released.

An Increase in a Tax Per Unit of Polluted Discharge