Asked by Maria Arias on May 03, 2024
Verified
Refer to Figure 19.5.2 above. Once consumers and firms develop awareness of the benefits of reducing energy consumption,
A) a tax on emissions is no longer necessary.
B) a tax on emissions is still necessary but it would be lower than before.
C) a tax on emissions needs to be larger to obtain the socially optimal level of industry output.
D) taxes should turn to subsidies.
Tax On Emissions
A governmental levy placed on the emission of pollutants, intended to reduce environmental harm.
Socially Optimal Level
A state where resources are allocated in the most efficient manner from the standpoint of society as a whole.
Industry Output
The total production of goods and services by all firms within a specific industry.
- Expound on the significance of public policy and behavioral economics in the management of energy consumption and reduction of environmental impacts.
Verified Answer
DG
Denaya Glanton
May 03, 2024
Final Answer :
B
Explanation :
Even though consumers and firms have developed awareness of the benefits of reducing energy consumption, a tax on emissions is still necessary to ensure that the socially optimal level of industry output is achieved. However, the tax would be lower than before as a result of the increased awareness and the resulting decrease in emissions.
Learning Objectives
- Expound on the significance of public policy and behavioral economics in the management of energy consumption and reduction of environmental impacts.
Related questions
It Is Possible to Reduce Emissions Without Intervention, Only If ...
In the Design of Public Policy to Reduce Energy Consumption ...
As in a Human Body,the Earth's Capacity to Repair Itself ...
When a Country's GDP Decreases,the Per Capita GDP Must Also ...
It Is Better to Rely on Pollution Prevention Rather Than ...