Question

Carbon dioxide emissions have been linked to global warming. The following table lists some possible public policies aimed at reducing the amount of carbon dioxide in the air. For each policy listed, identify whether it is a command-and-control policy (regulation), tradable permit system, corrective subsidy, or corrective tax. Command and Tradable Control Permit Corrective Corrective Public Policy The government charges factories $480 for every tonne of carbon dioxide they emit. The government orders every factory to adopt a new technology, which reduces carbon dioxide emissions into the atmosphere. The government agrees to reimburse all factories that purchase new, emissions- reducing technology in order to provide cleaner ai. The government limits total carbon dioxide emissions by all factories to 130,000 tonnes per decade. Each individual factory is given the right to emit 170 tonnes of carbon dioxide, and factories may buy and sell these rights in a marketplace. Policy System Subsidy Tax

Answer 1

Answer :

1- the government charges factories $480 for every tonne of carbon dioxide they emit- corrective tax.

Government imposes tax to reduce the negative externalities as imposition of taxes will increase the cost of production and producers will decrease production

2- the government order every factory to adopt a new technology, which reduces carbon dioxide emissions into the environment- command and control policy

Government make regulations which everyone have to follow

3- the government agrees to reimburse all factories that purchase new emission reducing technology in order to provide cleaner air- corrective subsidy

Government gives subsidy or payment to encourage producers or consumers to adopt the policy or method which will reduce the negative externalities

4- the government limits total carbon dioxide emissions by all factories to 130,000 tonnes per decade. Each individual factorbis given the right to emit 170 tonnes of carbon dioxide, and factories may buy and sell these rights in the market place - tradable permit system

A permit system under which government sets the limit for the emission