Suppose a country has two airlines. One is a small domestic airline that uses modern airplanes with lower CO2 emissions, and the other is a large international airline that uses older jumbo jets carrying hundreds of people at one time. A carbon emissions tax on airlines would be more efficient than a strict limit (command and control) on the total amount of carbon emissions each airline can produce. Two reasons that support this statement are: a. A carbon emissions tax would   a.allow the larger airline to continue using its less efficient airplanes b.not allow the large airline to continue using its less efficient airplanes . b. A command-and-control policy would likely   a.allow the larger airline to continue its service. b.force the larger airline to curb its service

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter12: Environmental Protection And Negative Externalities
Section: Chapter Questions
Problem 6SCQ: Classify the following pollution-control policies as command-and-control or market incentive based....
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Suppose a country has two airlines. One is a small domestic airline that uses modern airplanes with lower CO2 emissions, and the other is a large international airline that uses older jumbo jets carrying hundreds of people at one time.

A carbon emissions tax on airlines would be more efficient than a strict limit (command and control) on the total amount of carbon emissions each airline can produce.

Two reasons that support this statement are:

a. A carbon emissions tax would
 

a.allow the larger airline to continue using its less efficient airplanes

b.not allow the large airline to continue using its less efficient airplanes

.
b. A command-and-control policy would likely
 

a.allow the larger airline to continue its service.

b.force the larger airline to curb its service.

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