A pollution charge differs from command-and-control regulation because the charge:
ABans the pollution
BNames the technology
CSets the exact output
DPrices the pollution
Answer & Solution
Correct answer: D. Prices the pollution
1. The two families of policy work through different mechanisms.
2. Command-and-control laws specify allowable quantities of pollution.
3. They may also detail which pollution-control technologies companies must use.
4. A pollution charge is instead a tax imposed on the quantity of pollution a firm emits.
5. So the charge prices the pollution rather than dictating the method.
_Source: OpenStax Principles of Microeconomics for AP Courses 2e (CC BY 4.0), Ch 12 'Environmental Protection and Negative Externalities'_
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