Question

4. Understanding different policy options to correct for negative externalities Wative 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 permie system, corrective subsidy, or corrective tax. Command and Tradable Control Permit Corrective corrective Public Policy Policy System Subsidy Tax The government agrees to reimburse al factories that purchase new, emin reducing technology in order to provide cleaner air. 22 The government orders every factory to adopt a new technology, which reducers carbon dioxide emissions into the atmosphere The government charges factories $170 for every ton of carbon dioxide they emit A The government limits total carbon dioxide emissions by al factories to 140,000 to per month. Each individual factory is given the right to emit 120 tons of carbon dioxide and factories may buy and sell these nights in a marketplace

Answer 1

The government agrees to reimburse....- corrective subsidy

The government orders every factory.....- command and control policy

The government charges factories.......- corrective tax

The government limits total carbon- dioxide.....- tradable permit system