6. Which of the following tools is likely to encourage firms to find less-polluting technology?
| a.) Emission taxes |
| b.) Tradable pollution permits |
| c.) Emission agreements |
| d.) All of the above |
| e.) Only emission taxes and tradable pollution permits |
The correct options is (e),
Only emissions taxes and tradable pollution permits firms to encourage have less polluting technology.
Both have market approach so firm have a better alternative for reducing the pollution. Because it includes the pollution cost also.
6. Which of the following tools is likely to encourage firms to find less-polluting technology? a.)...