Which of the following statements is not correct?Group of answer choicesCorrective taxes require the government to set a target level of pollution.Corrective taxes provide incentives to develop cleaner technologies.Corrective taxes allocate pollution to those producers who face the highest cost of reducing pollution.Corrective taxes can be used to place a price on the right to pollute.
Question
Which of the following statements is not correct?Group of answer choicesCorrective taxes require the government to set a target level of pollution.Corrective taxes provide incentives to develop cleaner technologies.Corrective taxes allocate pollution to those producers who face the highest cost of reducing pollution.Corrective taxes can be used to place a price on the right to pollute.
Solution
The statement that is not correct is: "Corrective taxes require the government to set a target level of pollution." Corrective taxes, also known as Pigouvian taxes, are used to correct the negative externalities of pollution. They do not require the government to set a target level of pollution. Instead, they are designed to make polluters bear the social cost of their actions, thereby providing an incentive for them to reduce pollution.
Similar Questions
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.
In some cases, tradable pollution permits may be better than a corrective tax becauseGroup of answer choicesthe government can set a maximum level of pollution using permits.pollution permits are never preferred over a corrective tax.pollution permits allow for a market solution while a corrective tax does not.pollution permits generate more revenue for the government than a corrective tax.
Which of the following require firms to pay to pollute?(i)corrective taxes(ii)tradable pollution permits(iii)pollution regulationsGroup of answer choicesboth (i) and (ii)both (ii) and (iii)(i) only(iii) only
Which of the following is NOT a consequence of applying the polluter pays principle:Group of answer choicesA factory must pay tax to the government.A factory is required to pay for pollution created in the production of their product.A factory must pay damages for environmental harm resulting from an accident.
Which one of the following policies to control pollution is the most common in the United States?Group of answer choicespublic utility commissionsemission permitseco-taxescommand and control regulation
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