The advanced machinery used for limestone quarrying in a particular region leads to noise pollution and affects the hearing ability of people residing in the neighborhood. the quarrying activity also results in soil erosion. according to an environmental research group, the market price and output of limestone in this region is much higher than the socially efficient level, as the limestone producers do not include the social cost of production in their output decision. the group formally requests the government to impose a tax on limestone production to internalize the externality.
which of the following, if true, would support the taxation policy proposed by the research group?
a. recent environmental research reveals that the dust from the limestone quarrying site has severely contaminated the water at a nearby lake.
b. limestone producers in this region pay very high income taxes.
c. scientists have recently developed cost-effective andeasy-to-install sound filtering systems for limestone plants.
d. the limestone industry provides employment opportunities to a significant percentage of unskilled laborers in the region.
e. this country is the largest exporter of limestone.