4. Understanding different policy options to correct for negativeexternalities Carbon dioxide emissions have been linked to climate change. The following table lists some potential regulations targeting the amount of airborne carbon dioxide. For each policy listed, identify whether it is a command-and-control policy (regulation), tradable permit system, corrective subsidy, or corrective tax. Public Policy The government agrees to reimburse all factories that purchase new, emissions-reducing technology in order to provide cleaner air. The government limits total carbon-dioxide emissions by all factories to 240,000 tons per year. Each individual factory is given the right to emit 220 tons of carbon dioxide, and factories may buy and sell these rights in a marketplace. Command- and- Control Policy Tradable Permit System Corrective Corrective Subsidy Tax
4. Understanding different policy options to correct for negativeexternalities Carbon dioxide emissions have been linked to climate change. The following table lists some potential regulations targeting the amount of airborne carbon dioxide. For each policy listed, identify whether it is a command-and-control policy (regulation), tradable permit system, corrective subsidy, or corrective tax. Public Policy The government agrees to reimburse all factories that purchase new, emissions-reducing technology in order to provide cleaner air. The government limits total carbon-dioxide emissions by all factories to 240,000 tons per year. Each individual factory is given the right to emit 220 tons of carbon dioxide, and factories may buy and sell these rights in a marketplace. Command- and- Control Policy Tradable Permit System Corrective Corrective Subsidy Tax
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter10: Externalities
Section: Chapter Questions
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