Pollution is an example of a negative externality. Despite the gradual reduction in emissions from fossil fuels, many important environmental issues remain. Along with the still-high levels of air and water pollution, other issues...

Read about the three main types of market-oriented regulation, including pollution charges, marketable permits, and better-defined property rights

Command-And-Control Regulation: The simplest kind of regulation is to just tell people what to do. This has downsides, though.