An environmental program of emissions taxes or charges that creates incentives for technological innovation has the following characteristic(s)

1.it allows the firms, consumers and others that emit the polluting emissions the flexibility to determine how to reduce them, for example, by finding new ways to reduce pollution.

2. it places relatively less initiative and burden on government agencies to determine the optimal approach to reducing polluting emissions.

3. the enforcement costs (e.g., monitoring) are more expensive.

4. all of the above.

Please give explanation