What do market based pollution control tools recognize?

Market-based pollution control tools recognize that pollution does not only impose costs on society, but can also generate financial gains for polluters. These tools use the basic principles of economics to create economic incentives for businesses, encouraging them to reduce emissions by investing in more efficient processes or more effective pollution-control technologies. Such tools focus on outcomes, allowing companies to choose their own solutions to reach the desired environmental goals. Examples of market-based pollution control tools include emissions trading, taxes, and subsidies.