Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Which of the following is true about a carbon emissions tax? (Select all correct answers) a) A firm has an incentive to reduce emissions as
Which of the following is true about a carbon emissions tax? (Select all correct answers)
a) A firm has an incentive to reduce emissions as long as its marginal cost of reduction is lower than the tax.
b) A firm would pay the tax rather than reduce emissions if its marginal reduction costs are higher than the tax.
c) A tax on emissions guarantees that a reduction goal will be achieved.
d) A tax provides certainty about the future price on carbon.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started