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Mechanisms of Reducing Pollution Business firms that make a lot of profit can do anything to remain operational even when they have to corrupt the system. The best way of regulating pollution is by the use of control by the government basing on economic incentives. Limiting the level of pollution helps to maintain a sustainable environment as opposed to the cap-and-state system. Firms that emit much will always buy the allocation from those incurring low pollution compared to the allowed limits. Such initiative will leave the pollution level at the peak at all times. Emission standard through regulatory bodies restricts the level of pollution thus forcing the polluters to put in place the necessary mechanisms of meeting the requirements. It is healthy when the firms take initiatives to take precautions so that they cannot face the full force of the law. However, when the Cap-and-state policies are used, the polluter may buy all the remaining slots from other firms and emit the greatest pollution to the environment that could not be possible if the regulations were in operation ("Regulatory And Non-Regulatory Approaches To Pollution Control" 4-7). Economic incentives induced through the regulatory policies vis-a-vis the economic incentives are the best mode of curbing the pollution. Business companies undertake their activities to earn a profit and maximize their stakeholders’ wealth. Therefore, inducing benefits such as reduced taxes will help the firm to make more profit while checking on the environmental standards ("Regulatory Policy Vs Economic Incentives - The Environmental Literacy Council" N.p). It, therefore, helps in reducing pollution without much supervision
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