Information gaps and Carbon Tax

Question 1

What is asymmetric information?

Answer 1

When somebody knows more than someone else in the market

Question 2

What is symmetric information?

Answer 2

When both parties in a transaction have access to the same, complete, and accurate information

Question 3

What is carbon tax?

Answer 3

A tax on the consumption or production of goods and services which cause carbon emissions.
A policy designed to make the polluters pay for the externalties created

Question 4

What is the carbon border tax?

Answer 4

It aims to reduce the emissions by placing by a tariff on imports from countries with less stringent climate policies

Question 5

What is carbon trading?

Answer 5

A form of pollution control that uses the market mechanism to change relative prices

Question 6

What is a pollution permit?

Answer 6

They allow firms to produce a legal level if pollution every year, permits are tradeable this generates revenue and finacial incentive or firms to reduce to pollution