Refer to Figure 19.5.1 above. If the pollutant at issue is carbon dioxide, CO₂, the typical response suggested by policy analysts is:

A) an effluent fee.
B) a carbon tax.
C) an external fee.
D) a subsidy.

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in air and absorbed by plants in photosynthesis.

Policy Analysts

Professionals who evaluate and analyze policies, and recommend changes and improvements based on their research and analysis.

Carbon Tax

A levy on the carbon content of fossil fuels, intended to reduce carbon dioxide emissions and combat climate change.