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ParaPro Reading 1

Use the passage below to help you with your answers:
Should a government decide to control emissions, it may choose from a broad menu of regulatory approaches.

One option is direct controls, which set emissions standards for equipment and processes, require households and businesses to use specific types of equipment, or prohibit them from using others.

A government could also adopt more indirect, incentive-based approaches, either singly or in combination—for example, by restricting overall quantities of emissions through a system of permits or by raising the price of emissions through fees or taxes.

Incentive-based approaches are generally more cost-effective than direct controls as a means of regulating greenhouse gas emissions.

What does ""incentive-based"" mean in the context of the passage?

Select your answer

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