Asked by Rossi Lopez on Jun 23, 2024

verifed

Verified

An emissions tax will:

A) ensure that the marginal benefit of pollution is equal for all sources of pollution.
B) set standards to which all producers must adhere,regardless of their production costs.
C) cause all polluters to reduce emissions by the same amount.
D) increase pollution,but not in the most efficient cost-saving way.

Emissions Tax

A tax imposed on the emission of pollutants, aimed at reducing environmental harm by incentivizing companies to lower their pollution levels.

Marginal Benefit

The further enjoyment or utility obtained when one more unit of a product or service is consumed.

Pollution

The existence or entry of a harmful or toxic material or object into the environment.

  • Differentiate among various categories of taxes and their designed impacts on market dynamics and productivity.
  • Gain insight into the operation of pollution permits and their superiority to other regulatory practices.
verifed

Verified Answer

MA
Mohit AntilJun 26, 2024
Final Answer :
A
Explanation :
An emissions tax will ensure that the marginal benefit of pollution is equal for all sources of pollution. This means that all polluters will be forced to consider the cost of their pollution rather than just focusing on production costs. This will encourage polluters to find more efficient and less polluting ways of producing goods and services.