Question

Suppose you are tasked with designing a policy to lower emissions from automobile use. What type of policy (i.e. command and control standards, tradable permits, taxes, subsidies, liability, etc.) would you recommend and why

Answer 1

Tradable permits

Step-by-step explanation:

A tradable permit is a term that describes a market-based technique that provides the government with the chance or power to curb negative externalities produced by a group of companies.

In this situation, permits are traded among companies, whereby a company that has reduced production of the externality can trade permits to companies that are unable to make such reductions and are ready to pay for the permits.

Reason to recommend this Approach its policy:

It has been observed that, in every place where this approach or policy is used, the market for permits obtains the desired effect that is more profitable and productive for society