Summary

Market failure often results due to environmental factors such as pollution causing negative externalities and the environment

Some environmental products are public goods as you are unable to protect from free riders

The government intervenes in markets to reduce the negative externalities caused by environmental damage

They can use indirect taxes to increase and the cost of products to consumers

Pollution permits are used to control the level of harmful pollution

Macroeconomic objectives often conflict with environmental objectives such as growth and the protection of the environment