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July 29, 2014

Homework Help: Economics

Posted by G on Monday, June 16, 2008 at 2:11pm.

Is this a Pigovian Tax?

If the govenment were to impose a fee of $10,000 for each unit of air pollution released by a steel mill, this policy would be considered:

A) A Subsidy
B) A Regulation
C) A Pigovian tax
D) A Command-and-Control Policy

A know it is not a subsidy or a regulation.

The way I underdstand a Command-and-Control Policy is an example of "you are forbidden to dump garbage in the reiver".

Then if would be a Pigovian tax correct?

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