In theory, the government could set a … Pollution represented what economists call an externality—a cost that the responsible entity can escape but that society as a whole must bear. Tradable pollution permits = the government chooses the level of pollution (in total, for all firms) and firms then decide what they are willing to pay for these permits. This includes the California Air Pollution Control Laws. It also discusses an EPA program under which fines for environmental violations are reduced in exchange for pollution prevention and control activities. How you and your government can tackle air pollution. Several federal and state requirements and incentives are in effect for the production, sale, and use of ethanol, biodiesel, and other fuels made from biomass. Farmers. This legislation includes “command and control” measures and market-based economic instruments. Tax incentives for sustainable agriculture equipment and practices, as well as for keeping farmland in production, can help farmers stay on the land and preserve open space in rural areas. Instead of relying on intervention in the market mechanism by using taxation, subsidies or pollution permits, the government and its appointed agencies can regulate the level of output and pollution in a market. 7.2 Pollution Prevention and Control This section discusses the use of tax benefits and loans to promote pollution prevention and control. To help curb environmental pollution from waste there are two varieties of legislation. Curbing Plastic Pollution: Two Main Types of Legislation. Tax = the government basically sets the price of pollution and firms then choose the level of pollution (given the tax) that maximizes their profit. Role of Government to Control the Pollution The government will apply pollution controls in a variety of ways because the situation is too complex for just one approach to work. These laws address 35 air pollution districts through the state, each which is overseen by Boards. Tax incentives can be particularly useful in furthering such environmental ends as pollution control, energy conservation, and alternative energy use. From walking more to reducing waste, here’s what you can do to make a difference . The federal Energy Independence and Security Act of 2007 requires that 36 billion gallons of biofuels be used in the United States per year by 2022. Pollution taxes can lead to government failure. There are various state-level laws to curb pollution. Bonus articles: Pollution as a negative externality Command-and-control regulation The simplest kind of regulation is … Evaluation: Problems with Environmental Taxes. 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