Market-based instruments  - Regulations that encourage behavior through market signals rather than through explicit directives regarding pollution control levels or methods, Command-and-control theory - All the companies have to implement similar pollution control strategies, irrespective of the relative cost, Market based solutions - Pollution charges; tradable permits; market barrier reductions; and government subsidy reductions, Pollution charge systems - assess a fee or tax on the amount of pollution that a firm or source generates, The deposit refund system - asks individuals to pay a deposit for the bottles when they buy the products and pay back the money to them when the bottles are returned., Tradable permits - achieve the same cost-minimizing allocation of the control burden as a charge system, while avoiding the problem of uncertain responses by firms, Market barrier reductions - have great influence on eliminating the existing frictions in market activity in order to archive the benefits in the environmental protective issues., Government subsidy reductions - are thought to “promote economically inefficient and environmentally unsound practices”,

Market-based solutions

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