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.

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

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

In some cases, tradable pollution permits may be better than a corrective tax becauseGroup of answer choicesthe government can set a maximum level of pollution using permits.pollution permits are never preferred over a corrective tax.pollution permits allow for a market solution while a corrective tax does not.pollution permits generate more revenue for the government than a corrective tax.

Which of the following require firms to pay to pollute?(i)corrective taxes(ii)tradable pollution permits(iii)pollution regulationsGroup of answer choicesboth (i) and (ii)both (ii) and (iii)(i) only(iii) only

When there is uncertainty over the marginal cost of pollution abatement, explain when a tax on pollution is preferable to quantity regulation