The primary source of air pollution in the small town of Smokey, Nevada is a nearby steel mill. The local environmental agency has decided that the mill needs to reduce its emissions because the town's population is located directly downwind from it. Currently the agency is considering three different approaches to reducing pollution from the mill: a technology standard, an emission standard and an emission tax. Why might the owner of the mill prefer an emission standard to an emission tax that would produce the same level of emissions? O a. Because usually people hate taxes, although tax and standard will lead to the same cost O b. Because the total cost to the polluter will be lower with standard than with tax O C. Because it is technically easier to abate when there is a standard guiding the polluter O d. None of the above
The primary source of air pollution in the small town of Smokey, Nevada is a nearby steel mill. The local environmental agency has decided that the mill needs to reduce its emissions because the town's population is located directly downwind from it. Currently the agency is considering three different approaches to reducing pollution from the mill: a technology standard, an emission standard and an emission tax. Why might the owner of the mill prefer an emission standard to an emission tax that would produce the same level of emissions? O a. Because usually people hate taxes, although tax and standard will lead to the same cost O b. Because the total cost to the polluter will be lower with standard than with tax O C. Because it is technically easier to abate when there is a standard guiding the polluter O d. None of the above
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The primary source of air pollution in the small town of Smokey, Nevada is a nearby steel mill. The local environmental agency has decided that the mill needs to reduce its emissions because the town's
population is located directly downwind from it. Currently the agency is considering three different approaches to reducing pollution from the mill: a technology standard, an emission standard and an
emission tax.
Why might the owner of the mill prefer an emission standard to an emission tax that would produce the same level of emissions?
O a. Because usually people hate taxes, although tax and standard will lead to the same cost
b.
Because the total cost to the polluter will be lower with standard than with tax
O C. Because it is technically easier to abate when there is a standard guiding the polluter
O d. None of the above
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