Answer to Question #146582 in Macroeconomics for Tebogo kgotswani

Question

Do you think it is right thing to do to charge industries that pollute the air explain

Answer 1

Yes it the right thing.

Pollution charges makes industries which pollute environment change some of their economic behavior. Faced with paying for the social cost of their discharges, they might opt to;

(1) Stop their operations.

(2) To change their technologies and practices in order to reduce their pollution.

(3)To go on polluting and pay the charge. 

The pollution charges also create revenue for the government.