The text roughly outlines four categories of policies the government uses to protect the environment: Command and Control, Marketable Permits, Pollution Charges, and Defined Property Rights. Label each of the following potential government interventions by the policy categories listed above.
a. Charging a coal-fired plant $23 per ton of carbon emitted.
b. Provided permits to local manufacturing plants for 100,000 tons of CO2 and allowing them to buy and sell with each other.
c. Providing legal property rights over a stream to a local fishery so they can pursue damages from a lab polluting the stream.
d. Requiring all newly produced cars and light duty trucks to achieve 54.5 miles per gallon in 2025.
A. Pollution Charges
B. Marketable Permits
C. Defined Property
D. Command and Control
Explanation: In command and control, the government puts laws in place to protect the environment. In defined property, property rights are provided to parties to contain damages. In marketable permits, firms are provided with pollution quotas which they can trade with others. In pollution charges, firms are charged a certain amount on the basis of their amount of emissions.
The text roughly outlines four categories of policies the government uses to protect the environment: Command...