alleryStart learning →Which three categories are named as the market-oriented approaches to pollution control?
AFines, prison, closure orders
BTaxes, tariffs, trade quotas
CGrants, loans, tax holidays
DCharges, permits, property rights
Answer & Solution
Correct answer: D. Charges, permits, property rights
1. Market-oriented approaches work through prices and ownership rather than orders.
2. Command-and-control regulation dictates quantities and technologies directly.
3. The market-oriented approaches are grouped into three main categories.
4. They are pollution charges, marketable permits, and better-defined property rights.
5. A pollution charge is a tax imposed on the quantity of pollution a firm emits.
_Source: OpenStax Principles of Microeconomics for AP Courses 2e (CC BY 4.0), Ch 12 'Environmental Protection and Negative Externalities'_
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