Question #47674

Which of the following is true regarding tradable pollution permits and Pigouvian taxes ?

Options:

A) All of these answers are true

B) Pigouvian taxes and tradable pollution permits create an efficient market for pollution.

C) Tradable pollution permits efficiently reduce pollution only if they are initially distributed to the firms that can regulator pollution at the lowest cost.

D) To set the quantity of pollution with tradable pollution permits, the regulator must know everything about the demand for pollution rights.

E) E. Pigovian taxes are more likely to reduce pollution to a targeted amount than tradable pollution permits.

Answer: Which of the following is true regarding tradable pollution permits and Pigouvian taxes Pigouvian taxes and tradable pollution permits create an efficient market for pollution..

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Question #47674

Which of the following is true regarding tradable pollution permits and Pigouvian taxes ?

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Question #47674

Which of the following is true regarding tradable pollution permits and Pigouvian taxes ?

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