Question

2. Understanding different policy options to correct for negativeexternalities Carbon dioxide emissions have been linked to increased air pollution. 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- Control Policy Tradable Permit System Corrective Subsidy Corrective Tax Public Policy The government agrees to reimburse all factories that purchase new, emissions- reducing technology in order to provide cleaner air. The government charges factories $450 for every ton of carbon dioxide they emit. The government orders every factory to adopt a new technology, which reduces carbon- dioxide emissions into the atmosphere. о O O The government limits total carbon dioxide emissions by all factories to 180,000 tons per decade. Each individual factory is given the right to emit 140 tons of carbon dioxide, and factories may buy and sell these rights in a marketplace. Grade It Now Save & Continue Continue without saving

Answer 1

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

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

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

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