Two Policy Options for Reducing Emissions Are Cap-And-Trade and the Carbon

question 55

Multiple Choice

Two policy options for reducing emissions are cap-and-trade and the carbon tax. Which of the following is true?

• A) Both will result in lower prices for consumers.
• B) Both will result in lower costs for firms.
• C) Both will increase total emissions.
• D) Both will discourage the development of greener technologies.
• E) Both will not raise large amounts of revenue for the government.