It is often argued that effluent charge may have a regressive effect on income distribution (i.e., lower-income

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It is often argued that effluent charge may have a regressive effect on income distribution (i.e., lower-income households may end up paying more tax relative to their income). However, some economists argue that the effluent charge should not be dismissed on the basis of "fairness" alone. The issue of fairness can always be addressed separately through income redistribution. For example, the tax revenue from an effluent charge can be used to compensate the losses of the damaged parties. Are you convinced by this argument? Explain

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