Asked by cemsid miroglu on Jun 27, 2024

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Taxes are a more effective method of controlling pollution than are environmental standards because:

A) standards allow greater flexibility.
B) standards require less information.
C) standards never require the efficient level of output.
D) taxes encourage reducing pollution at the lowest possible cost.

Environmental Standards

Regulations and criteria set by authorities or organizations to protect the environment from harmful levels of pollutants or to manage the use of natural resources.

Flexibility

The ability to adapt to new, different, or changing requirements or conditions.

Pollution

The introduction of contaminants into the natural environment that cause adverse changes, affecting air, water, and soil quality.

  • Compare the effectiveness of taxes and environmental standards in controlling pollution.
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Verified Answer

SG
Samantha GuillenJul 03, 2024
Final Answer :
D
Explanation :
Taxes create a financial incentive for firms to reduce pollution at the least cost-effective level, whereas environmental standards create a set of rules that can restrict output even beyond the most cost-effective level. This makes taxes a more effective method to control pollution than environmental standards.