In Some Cases, Pollution Permits May Be Better Than a Pigovian

question 9

Multiple Choice

In some cases, pollution permits may be better than a Pigovian tax because:

• A)Pigovian taxes reduce pollution by a greater amount than pollution permits
• B)pollution permits generate more revenue for the government than a Pigovian tax
• C)pollution is difficult to measure
• D)the government has more explicit control over the quantity of pollution created with permits