Carbon dioxide emissions have been linked to increased air pollution. The following table lists some possible public policies aimed at reducing the amount of carbon dioxide in the air. For each policy listed, identify whether it is a command-and-control policy (regulation), tradable permit system, corrective subsidy, or corrective tax.Command-and-ControlPolicyTradablePermitSystemCorrectiveCorrectivePublic PolicySubsidyТаxThe government orders every factory to adopt a new technology, which reduces carbon-dioxide emissions into the atmosphere.The government charges factories $110 for every ton of carbon dioxide they emit.Trees take carbon dioxide out of the air and convert it to oxygen, so the governmentfunds a tree-planting initiative by offering $110 to any citizen who plants a tree.The government limits total carbon-dioxide emissions by all factories to 180,000 tonsper year. Each individual factory is given the right to emit 140 tons of carbon dioxide,and factories may buy and sell these rights in a marketplace.

The policy is the set of principles that guides the decisions and leads to achieving rational…

Answered: For each policy listed, identify…

For each policy listed, identify whether it is a command-and-control policy (regulation), tradable permit system, corrective subsidy, or corrective tax.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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