Question

When society requires that firms reduce pollution, what approach is typically adopted to achieve this goal?

A) Voluntary emissions reduction programs
B) Increased tax incentives for polluting industries
C) Weakening environmental regulations
D) Public awareness campaigns on pollution

Answer 1

Market-oriented environmental policies, such as pollution charges, marketable permits, and better-defined property rights, are typically adopted to achieve the goal of reducing pollution in society.

Step-by-step explanation:

When society requires that firms reduce pollution, the approach typically adopted to achieve this goal is through market-oriented environmental policies. These policies create incentives for firms to reduce pollution by allowing them flexibility in finding the least expensive technologies to do so. The main categories of market-oriented approaches to pollution control include pollution charges, marketable permits, and better-defined property rights.