What is a “pay-to-pollute” system that charges a fee or tax to those who discharge carbon into the air?Question 24Answera.pollution taxb.carbon taxc.environmental taxd.cap and trade tax

A carbon tax aims to reduce carbon dioxide emissions by taxing transactions that involve no carbon.Group of answer choicesTrueFalse

There are two main types of carbon pricing: emissions trading systems (ETS) and carbon taxes. The choice of the instrument will depend on national and economic circumstances. Group of answer choicesTrueFalse

If the government decides to adopt a carbon tax, the price of goods whose production generates carbon emissions will ________ and the quantity produced will ________.Group of answer choicesincrease; increasedecrease; increaseincrease; remain unchangeddecrease; decreaseincrease; decrease

Imposing taxes that increase as a firm's pollution increases is often recommended by economists as a means to reduce pollution. The reason for this recommendation is that such taxes would likely aeliminate pollution completely bencourage firms to use the most efficient method to reduce pollution cbe paid out of firm's profits and not paid for by higher consumer prices dencourage firms to increase production

Which of the following statements is not correct? aCorrective taxes allocate pollution to those producers who face the highest cost of reducing pollution. bCorrective taxes provide incentives to develop cleaner technologies. cCorrective taxes can be used to place a price on the right to pollute. dCorrective taxes require the government to set a target level of pollution.