For the same amount of pollution emitted,an emissions tax is said to be more efficient than is an environmental standard because all polluters:
A)emit pollution up to the point at which the marginal benefit of polluting is equal to the emissions tax.
B)emit the same amount of pollution,regardless of the marginal benefit of polluting.
C)pay the same total tax bill for their pollution.
D)reduce pollution emissions to zero.

Question

Quizplus · Accepted Answer

An emissions tax creates an incentive for polluters to reduce emissions up to the point where the cost of reducing the emissions is equal to the tax. This means that they will only emit pollution up to the point where it is economically efficient to do so, leading to the reduction of overall pollution output. Environmental standards, on the other hand, do not provide an economic incentive for reducing emissions and may lead to inefficient levels of pollution. Therefore, an emissions tax is more efficient.

For the Same Amount of Pollution Emitted,an Emissions Tax Is