Final answer:
Pollution-control policies can be either command-and-control or market incentive based. A state emissions tax and the sale of pollution permits are market-based mechanisms, whereas direct regulations by the government or an agency are command-and-control.
Step-by-step explanation:
When classifying pollution-control policies, we categorize them as either command-and-control or market incentive based. In the list provided:
- a. A state emissions tax on the quantity of carbon emitted by each firm is an example of a corrective tax, which is a market incentive based approach.
- b. The requirement for domestic auto companies to improve car emissions by 2020 falls under command-and-control regulation.
- c. The EPA setting national standards for water quality is also a command-and-control policy.
- d. A city selling permits for pollution emission is a tradable permit system, which is market incentive based.
- e. The federal government paying fishermen to preserve salmon represents a corrective subsidy, a market incentive based method.
Regarding complaints about command-and-control regulations, market-oriented tools address concerns like cost-effectiveness, innovation encouragement, and flexibility.
For instance, corrective taxes and subsidies provide financial incentives to reduce pollution, while tradable permits allow firms the flexibility to buy or sell the right to pollute, thus harnessing market forces to achieve environmental goals.