The four bins below present potential responses to environmental environmental p

Question

The four bins below present potential responses to environmental environmental problems.  

Quesion 13 of 16 The Sour bins below present polential bin Pust best matches it. It is possible that a bin may end up wth more than ore scenario or none at al s to environmental pratlems Place each response in the Command and control Marketable or Tradable reguaton (o.g Polluton Permns Polution or environmental standards) e.g.cap-and-Irade) fined Property Rights sions Tax An auto manufacturer is Govenment requires that Govemment requires hat charged a fee per unst ofauto monufactirers use auto poilion emsited imto nver a no, clesner technoloy in producing cars theeshold A steel mil pays nearby alowed to polute as muchhomeowners to compensate as hey wish, provided th they have purtusea suficient mus put up with ns # resultof stecl manufacturing procuss nber of poltuton vouchers.

Explanation / Answer

1. Command and control Regulation : Government requires that auto manufacturers uses a new, cleaner technology in producing cars.

Government requires that auto manufacturers limit pollution to a specified threshold.

2. Marketable and Tradable Permits : Automanufacturers are allowed to pollute as much as they wish, provided that they have purchased a sufficient number of pollution voucher.

3. Pollution or Emission tax : An auto mobile is charged a fee per unit of pollution emitted into the river.

4. Well-defined property rights: A steel mill pays nearby homeowners to compensate them for the noise they must put up with as a result of the steel manufacturing process.

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