Markets can help solve environmental problems from "summary" of Economics of the Environment by Robert N. Stavins
The interaction between markets and the environment is a topic of great importance in the field of environmental economics. The concept that markets can help solve environmental problems is based on the idea that market forces can be harnessed to achieve environmental goals more efficiently than traditional regulatory approaches. One way in which markets can help solve environmental problems is through the use of economic incentives. By placing a price on environmental goods and services, such as clean air and water, markets can create incentives for individuals and firms to reduce their environmental impact. For example, by implementing a cap-and-trade system for greenhouse gas emissions, companies are given a financial incentive to reduce their emissions, as they can sell any excess allowances they have or buy additional allowances if nee...
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