Question

The main disadvantage of an emissions tax is that :______.a) the total pollution reduction from an emissions tax cannot be known for sure. b) firms lack the flexibility to pursue different technologies. c) firms do not have an incentive to reduce pollution. d) firms cannot behave in an economically-efficient manner. e) differences among firms are not incorporated into the policy.

Answer 1

.a) the total pollution reduction from an emissions tax cannot be known for sure.

Step-by-step explanation:

The broad form of taxes by government on greenhouse gases , these is

✓an emissions tax: this tax is been put on the company due to the quantity that is been produced by entity. This emmision tax is imposed as a result of green house effect gas that is been produced during operation of companies example of this carbon tax, since the effect of the green house is felt in weather events, this tax is on goods or services which is known to be greenhouse gas-intensive, for instance carbon tax on gasoline. It should be noted that the main disadvantage of an emissions tax is that the total pollution reduction from an emissions tax cannot be known for sure.