Direct bans are employed when direct thread to human health is very heavy. Sometimes, performance standards are imposed on inputs rather than outputs. This has been the case with the standards for automobiles, houses and major appliances. For marketplace strategies, the governments provided tax credits, deductions and direct producer payments to lower the price of wind energy, ethanol and solar energy. One of the most important marketplace strategies is environmental taxes.
Environmental taxes come in three forms.
First, taxes or fees used to raise revenues for pollution cleanup. Second, environmental taxes designed to prevent pollution by changing behavior. Third, environmental taxes intended to finance measures to reduce consumption. One example of environmental taxes in US is the ozone depleting chemical tax which is levied on a manufacturer, producer, or sellers of ozone depleting chemical-containing products. Chinas pollution situation has caused the attention of the government.