An effluent fee
A) is a dollar value added to the price of a pollution-generating product
B) is a command-and-control instrument
C) can be based upon the degree of harm linked to the contaminant being released
D) cannot be linked to the quantity of pollution released

Question

Quizplus · Accepted Answer

An effluent fee is a type of economic instrument where a fee is charged for the pollution being discharged into the environment. This fee can be based on the degree of harm linked to the contaminant being released. Therefore, choice C is the correct answer as it accurately describes an effluent fee. Choices A and B are incorrect as they do not accurately reflect the definition of an effluent fee. Choice D is also incorrect as the quantity of pollution released is one of the factors that can be taken into account when calculating the effluent fee.

An Effluent Fee