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Question 31 pts Which type of policy tool uses an equiproportionate reduction in emissions? Market-based (i.e.,...

Question 31 pts Which type of policy tool uses an equiproportionate reduction in emissions?

Market-based (i.e., tradable permits)

Information-based (Persuasion)

Command and Control (Prescriptive)

Price-based (i.e., taxes or subsidies)

Liability-based (i.e. tort law)

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Answer #1

Answer - Option D

Price Based

This is because the larger will be the amount of the taxes imposed on the emissions or the larger the amount of subsidy for installing the anti pollution devices the lesser will be the amount of the emissions.

That is the reduction in the emission will take place proportionately to the increase in the taxes or the subsidies.

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