m 4 Help Seve& Exit Sulbmit Use the f information to answer the question below I

Question

m 4 Help Seve& Exit Sulbmit Use the f information to answer the question below It is the custom for paper mills located alongside the Layzee River to discharge waste products into the river As a result,operators of hydroelectric power-generating plants downstream along the river find that they must clean up the river's water before t flows through thesr equipment Based on the preceding information, which of the following policies would be most appropriate for dealing with this problem? Levy a tax on the consumers of paper products and use the tax revenues to Levy a tax on the consumers of electricity and use the tax revenues to subsidize the consumers of paper products Levy a tax on the producers of electricity and use the tax revenues to clean up the river Next >

Explanation / Answer

Option 3 is correct

The most apt policy would be to levy a tax on the producers of electricity ("polluter pays principle") and use the tax revenues to clean up the river.

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