4. Economic Instruments for Sustainability

Market-based Environmental Policies — Quiz

Test your understanding of market-based environmental policies with 5 practice questions.

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Practice Questions

Question 1

What is the main goal of a carbon tax in market-based environmental policy?

Question 2

What is an emissions trading system also called?

Question 3

In a cap-and-trade system, what does one permit usually represent?

Question 4

Why are market-based environmental policies often preferred over simple bans?

Question 5

What is the role of a subsidy for clean technology in environmental policy?