Major cause of air pollution

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Emissions from cars are a major cause of air pollution. As a consequence, a car may be registered in New York only if the car passes a smog test, meaning that the car's measured emission rate is below a threshold. Suppose New York were to convert the smog test into a tax on the car's total emissions, calculating total emissions as the measured emission rate times miles driven. Explain why the result would be cleaner air and an increase in economic efficiency.

Reference no: EM132414656

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