Quiz 2 Flashcards
1
Q
Externality
A
Uncompensated impact of one person’s action that benefits or harms others
2
Q
Command and control
A
Government requires factories to adopt new technology, reducing emissions
3
Q
Tradable permit system
A
Government creates permits for the total amount of emissions they want to allow, which are distributed to factories that they can buy and sell
4
Q
Corrective subsidy
A
Government reimburses companies for switching to new technology
5
Q
Corrective tax
A
Government charges companies for their emissions
6
Q
A
