Skip to content

ACCA Applied Knowledge · Business and Technology · Environmental and sustainability factors

A manufacturing company is told by the government that it must pay a charge for each tonne of carbon dioxide it emits. Which type of environmental factor does this BEST illustrate?

A per-tonne carbon charge is a market-based regulatory measure. Government uses it to make the business bear the cost of the pollution it causes, so the polluter pays. It is compulsory rather than voluntary, and it is unrelated to demographic changes in consumer tastes.

  1. AA market-based regulatory measure that makes the business bear the cost of pollutionCorrect
  2. BA voluntary code that the company may choose to ignore
  3. CA change in consumer tastes caused by demographic shifts

Explanation

A charge per tonne of emissions is a government instrument that internalises the cost of pollution, so the polluter pays. It is compulsory, so it is not a voluntary code. It is not driven by demographic change in consumer tastes.

Did you get it right without looking?

One question tells you little. A timed set on Environmental and sustainability factors shows your real accuracy, how long you take and where you lose marks.

Practise Environmental and sustainability factorsFree diagnostic mock

More Environmental and sustainability factors questions