Carbon-dioxide emissions have been linked to increased air pollution. The follow
ID: 1194545 • Letter: C
Question
Carbon-dioxide emissions have been linked to increased air pollution. The following table lists some possible approaches to reducing the amount of carbon dioxide in the air. For each approach, use the dropdown menu to identify whether it is a command and control policy (regulation), a pollution tax, an emissions permit system, or a system of voluntary compliance.
Type of Public Policy
A. Direct Control (Demand and Control) B. Pollution Tax
C. Voluntary Compliance D. Emissions Permit System
Public PolicyType of Public Policy
The government orders every factory to reduce its emissions to no more than 100 tons of carbon dioxide per month.A. Direct Control (Demand and Control) B. Pollution Tax
C. Voluntary Compliance D. Emissions Permit System
The government limits total carbon-dioxide emissions by all factories to 100,000 tons per month by selling rights to emit to the highest bidders, with the price determined by demand and supply.Explanation / Answer
a) Public Policy option 1 : The government orders every factory to reduce its emissions to no more than 100 tons of carbon dioxide per month.
The above is a kind of Direct Control (Demand and Control) where government allows each factory to emit a given limit of carbon dioaxide, whic is 100 tons per month here and no factory can emit more than that otherwise it would be a breach of regulation..
b) Public Policy option 2 : The government limits total carbon-dioxide emissions by all factories to 100,000 tons per month by selling rights to emit to the highest bidders, with the price determined by demand and supply.
The above policy is a kind of Emissions Permit System because here limit is decided for industry not for each factory, factories can trade within themselves and some can emit more than others because of such permit system but the total emission will be limited as decided by the government.