Final answer:
The creation of voluntary water markets is an example of a market barrier reduction approach to environmental policy, which is true.
Step-by-step explanation:
The statement is true. The creation of voluntary water markets is an example of a market barrier reduction approach to environmental policy. Market-oriented environmental tools, such as voluntary water markets, aim to incentivize the reduction of pollution by allowing parties to trade rights to use water resources. By creating a market for water, the policy encourages efficient allocation and conservation of water resources.