MEASURES GOVERNMENT TAKE

Here's a short summary on what types of government intervention is done in different situations.

EXTERNAL COST IN PRODUCTION

1. Market based solutions - taxes and tradable permits

2. Legislation

EXTERNAL BENEFIT IN PRODUCTION

1. Market based solutions - subsidies

2. Legislation

EXTERNAL BENEFIT IN CONSUMPTION

1. Market based solutions - subsidies

2. Legislation

3. Direct provision 

By Puja