Production of a good generates pollution. EPA has two policy options to regulate the pollution. It can [impose a tax on

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answerhappygod
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Production of a good generates pollution. EPA has two policy options to regulate the pollution. It can [impose a tax on

Post by answerhappygod »

Production of a good generates pollution. EPA has two policy options to regulate the pollution. It can [impose a tax on the output of the good] or it can [impose a tax on the emission of the pollutant] that gets generated while producing the good.

Will both the policy options generate same effect, and if they will be equally efficient?
(Please Explain in own words in short/NO PLAGIARISM PLEASE)
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