If the objective of economic policy is to decrease the amount of pollution by an industry in the long run, the

A. appropriate course of action for government is to do nothing.

B. most effective policy action would be a tax on polluting firms.

C. most effective policy action would be a subsidy to firms for the reduction of emissions.

D. appropriate course of action for government is to increase R&D outlays to develop technology to remove the emissions from the environment.

Question

Business

Caitlin

23 April, 00:16

If the objective of economic policy is to decrease the amount of pollution by an industry in the long run, the

A. appropriate course of action for government is to do nothing.

B. most effective policy action would be a tax on polluting firms.

C. most effective policy action would be a subsidy to firms for the reduction of emissions.

D. appropriate course of action for government is to increase R&D outlays to develop technology to remove the emissions from the environment.

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Answers (1)

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Issac Grant · Answer 1

If the objective of economic policy is to decrease the amount of pollution by an industry in the long run, the (C) Most effective policy action would be a subsidy to firm for the reduction of emissions.

Explanation:

To decrease the amount of pollution by industry, in the long run, we can also enforce a tax on polluting firms. As we know that, if we punish someone for doing a wrong thing in front of everyone then others will not dare to do the same thing in the future because of fear of punishment.

So this method is also good to apply but it will only punish the person who causes pollution but it will not provide a method to reduce pollution which is already present. It is better to motivate someone to do good things instead of living their life, in fear of some punishment. So according to me, it's better that we give a subsidy to firm for the reduction of emission.