Indicate whether the statements below are true or false. Pollution taxes are mor
ID: 1199884 • Letter: I
Question
Indicate whether the statements below are true or false. Pollution taxes are more effective at reducing pollution than marketable permits. Marketable permits typically achieve pollution reduction at a lower cost than command-and-control regulation. The term "cap and trade" describes regulation by r marketable permits. Marketable permits provide their owners with the right to pollute a specified amount. Compared with no regulation, regulation with marketable permits increases firms' costs. Marketable permits are not as effective as pollution taxes at reducing pollution.Explanation / Answer
Pollution taxes are more effective at reducing pollution than marketable permit- FALSE
Marketable permits typically achieve pollution reduction at a lower cost than command-control regulation- TRUE
The term "Cap and trade" describes regulation by marketable permits- TRUE
Marketable permits provide their owners with the right to pollute a specified amount- TRUE
Compared with no regulation, regulation with marketable permits increases firms' cost- TRUE
Marketable permits are not as effective as pollution taxes at reducing pollution- FALSE.