The four categories present potential responses to environmental problems. Place each response in the category that best matches it. It is possible that a category may end up with more than one scenario or none at all.Command‑and‑control regulation (e.g., environmental standards)Marketable or tradable pollution permits (e.g., cap‑and‑trade)Pollution or emissions taxWell‑defined property rights The government requires that auto manufacturers limit pollution to a specified threshold.An auto manufacture is charged a fee per unit of pollution emitted into a river.Auto manufactures are allowed to pollute as much as they wish, provided that they have purchased a sufficient number of pollution vouchers.The government requires that auto manufacturers use new, cleaner technology in producing cars.A steel mill pays nearby homeowners to compensate them for the noise they must put up with as a result of the steel manufacturing process.

Command and control approach directs the environmental policy that has been imposed. It displays a type of regulation. Tradable pollution permits means there is permission to produce a certain level of pollution while in the production process. The pollutants must pay to buy the permit from the buyer. The permission is issued by the government and it is possible to trade. Emission tax is a form of tax which has been imposed on the emissions that are generated by the industrial and commercial processes. Property rights are the legal right that an individual has to privately own and accumulate resources.Command and control approach: The government requires that auto manufacturers limit pollution to a specified threshold. The government requires that auto manufacturers use new, cleaner technology in producing cars. Tradable pollution permits: Auto manufacturers are allowed to pollute as much as they wish, provided that they have purchased a sufficient number of pollution vouchers. Pollution or emissions tax: An auto manufacture is charged a fee per unit of pollution emitted into a river. Well-defined property rights: A steel mill pays nearby homeowners to compensate them for the noise they must put up with as a result of the steel manufacturing process (it is also included in or Pollution or emissions tax).

Answered: The four categories present potential…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The four categories present potential responses to environmental problems. Place each response in the category that best matches it. It is possible that a category may end up with more than one scenario or none at all.

Command‑and‑control regulation (e.g., environmental standards)	Marketable or tradable pollution permits (e.g., cap‑and‑trade)	Pollution or emissions tax	Well‑defined property rights

The government requires that auto manufacturers limit pollution to a specified threshold.
An auto manufacture is charged a fee per unit of pollution emitted into a river.
Auto manufactures are allowed to pollute as much as they wish, provided that they have purchased a sufficient number of pollution vouchers.
The government requires that auto manufacturers use new, cleaner technology in producing cars.
A steel mill pays nearby homeowners to compensate them for the noise they must put up with as a result of the steel manufacturing process.

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