Imposing taxes that increase as a firm's pollution increases is often recommended by economists as a means to reduce pollution. The reason for this recommendation is that such taxes would likely aeliminate pollution completely bencourage firms to use the most efficient method to reduce pollution cbe paid out of firm's profits and not paid for by higher consumer prices dencourage firms to increase production

Which of the following statements is not correct? aCorrective taxes allocate pollution to those producers who face the highest cost of reducing pollution. bCorrective taxes provide incentives to develop cleaner technologies. cCorrective taxes can be used to place a price on the right to pollute. dCorrective taxes require the government to set a target level of pollution.

When there is uncertainty over the marginal cost of pollution abatement, explain when a tax on pollution is preferable to quantity regulation

Which of the following require firms to pay to pollute?(i)corrective taxes(ii)tradable pollution permits(iii)pollution regulations aboth (ii) and (iii) bboth (i) and (ii) c(iii) only d(i) only

Two firms, A and B, each currently emit 100 tons of chemicals into the air. The government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution emitted into the air. The government gives each firm 40 pollution permits, which it can either use or sell to the other firm. It costs Firm A $200 for each ton of pollution that it eliminates before it is emitted into the air, and it costs Firm B $100 for each ton of pollution that it eliminates before it is emitted into the air. After the two firms buy or sell pollution permits from each other, we would expect that Firm A will emitGroup of answer choices20 fewer tons of pollution into the air, and Firm B will emit 100 fewer tons of pollution into the air.100 fewer tons of pollution into the air, and Firm B will emit 20 fewer tons of pollution into the air.20 more tons of pollution into the air, and Firm B will emit 100 fewer tons of pollution into the air.50 fewer tons of pollution into the air, and Firm B will emit 50 fewer tons of pollution into the air.

An industry continuously produces harmful gases and releases it into the atmosphere without any treatment.Which of the following actions by the government can help the environment?a.Giving a bonus to the industry for being productiveb.Providing a tax breakc.Advising other industries to act the same was the polluting industryd.Levying a pollution tax on the industry