Final answer:
Market-based environmental solutions include cap and trade, pollution charges, and marketable permits, incentivizing businesses to reduce emissions.
Step-by-step explanation:
Market-based solutions to environmental issues include cap and trade programs, pollution charges, marketable permits, and well-defined property rights. Cap and trade allow companies to buy and sell allowances that permit them to emit a certain amount of pollution, incentivizing the reduction of emissions.
Pollution charges impose a fee on pollutants, offering an economic incentive for companies to pollute less. Marketable permits are similar to cap and trade, enabling entities to trade the rights to emit pollutants under a regulated cap. These market-oriented environmental policies can be effective in reducing pollution but have pros and cons.
Advantages include promoting cost-effective pollution control and innovation, while disadvantages may involve complex administration and potentially unequal impact on small businesses or low-income communities.