Question: Understanding different policy options to correct for negativeexternalities Carbon dioxide emissions have been linked to melting of sea ice. The following table lists some potential

Understanding different policy options to correct for negativeexternalities
Carbon dioxide emissions have been linked to melting of sea ice. The following table lists some potential regulations targeting the amount of airborne carbon dioxide.
For each policy listed, identify whether it is a command-and-control policy (regulation), tradable permit system, corrective subsidy, or corrective tax.
\table[[Public Policy,Command-and Control Policy,Tradable Permit System,\table[[Corrective],[Subsidy]],Corrective Tax],[The government orders every factory to adopt a new technology, which reduces carbon-dioxide emissions into the atmosphere.,O,O,0,],[The government agrees to reimburse all factories that purchase new, emissions-reducing technology in order to provide cleaner air.,0,(,0,0],[The government charges factories $550 for every ton of carbon dioxide they emit.,0,0,O,0]]
The government limits total carbon-dioxide emissions by all factories to 280,000 tons per ten years. Each individual factory is given the right to emit 240 tons of carbon dioxide, and factories may buy and sell these rights in a marketplace.
Understanding different policy options to correct

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