The internal combustion engines that power most cars generate a number of pollutants, including carbon dioxide, nitrogen dioxide, benzene, and others. If it were costless to implement (design, roll out, monitor, & enforce) new environmental policies, which of the following would economists likely recommend as a way to regulate those pollutants? O a. Introduce a cap and trade system (permit market) for CO2, but adjust the cap downward by 10% to account for the other pollutants. O b. Introduce a single environmental tax (say, 20%) for all new gas-powered cars, regardless of their emissions profile O c. Introduce a separate tax for each externality: one tax per pollutant, with tailpipe monitors measuring actual emissions.
The internal combustion engines that power most cars generate a number of pollutants, including carbon dioxide, nitrogen dioxide, benzene, and others. If it were costless to implement (design, roll out, monitor, & enforce) new environmental policies, which of the following would economists likely recommend as a way to regulate those pollutants? O a. Introduce a cap and trade system (permit market) for CO2, but adjust the cap downward by 10% to account for the other pollutants. O b. Introduce a single environmental tax (say, 20%) for all new gas-powered cars, regardless of their emissions profile O c. Introduce a separate tax for each externality: one tax per pollutant, with tailpipe monitors measuring actual emissions.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:The internal combustion engines that power most cars generate a number of pollutants, including carbon dioxide,
nitrogen dioxide, benzene, and others. If it were costless to implement (design, roll out, monitor, & enforce) new
environmental policies, which of the following would economists likely recommend as a way to regulate those
pollutants?
O a. Introduce a cap and trade system (permit market) for CO2, but adjust the cap downward by 10% to account for the other
pollutants.
b. Introduce a single environmental tax (say, 20%) for all new gas-powered cars, regardless of their emissions profile
O c. Introduce a separate tax for each externality: one tax per pollutant, with tailpipe monitors measuring actual emissions.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education