Multiple Choice
In which of the following ways are Pigovian taxes and pollution permits similar?
(i) in both cases, firms pay for their pollution.(ii) both internalise the externality of pollution by making it costly to pollute.(iii) each policy allows for a market-based solution.
A) (i) , (ii) and (iii)
B) (i) and (iii) only
C) (ii) only
D) (ii) and (iii) only
Correct Answer:
Verified
Correct Answer:
Verified
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