10 . Understanding different policy options to correct for negativeexternalities Carbon dioxide emissions have been linked to degradation of air quality. The following table lists some potential regulations targeting the amount of airborne carbon dioxide. For each policy listed, identify whether it is a command-and-control policy (regulation), tradable permit system, corrective subsidy, or corrective tax. Tradable Command-and- Permit Corrective Corrective Public Policy Control Policy System Subsidy Tax The government charges factories $500 for every ton of carbon dioxide _ O O O 0 they emit. The government limits total carbon-dioxide emissions by all factories to 260,000 tons per five years. Each individual factory is given the right to O O O O emit 230 tons of carbon dioxide, and factories may buy and sell these rights in a marketplace. The government agrees to reimburse all factories that purchase new, . . . . . . O O O O emnssnons-reducmg technology In order to provude cleaner air. The government orders every factory to reduce its emissions to no more 0 O O 0 than 230 tons of carbon dioxide per five years