In your view why are taxes and tradable permits preferred to command and control policies.

Expert Solution

Globally taxes and tradable permits are considered as economic indicator which command and control policies.These two indicators in many sphere they share similarities but both are preferable to the other.Taxes can be considered as "Green taxes" imposed on pollution control which comes under environmental policies,whereas tradable permits can be given to those industries which keeping in mind environmental issues.When environmental issues are discussed it gives command over the policy that has to be intiated by the government.

Environmental policies typically combine the identification of a good with some means to achieve that goal. For instance, when government gives permission to start an industry it keeps certain issues in its mind pertaining to change systems,tradable permits,market friction reductions and government subsidy reductions.therefore when government gives permission it makes those industries abide with the command and control policies,which in turn contributes to economic change with environmental control which reduce concentrations of pollution,as opposed to those operate in the natural resources realm and achieve various goals of resources management.The tradable development rights mitigate tradable permit systems used to govern the allocation rights.

Rahul Sunny answered 1 year ago

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