States regulate the insurance industry differently, so this idea would not work in all states today it would in some. Such regulatory relief would be based on demonstration that the environmental and health benefits of pollution prevention exceed the benefits foregone by regulatory delay. To make this work, it would have to be combined with strong incentives for, and assistance in, achieving pollution prevention. Simply making waste disposal more expensive, without offering alternatives, might simply increase illegal dumping. Technology transfer programs.
State governments can help industries learn how to prevent pollution.
Companies producing pollution at that level would not be taxed and would not be subsidized. Pollution above the control level would be entirely unacceptable and would be subject to strict enforcement. Smaller firms might be given larger subsidies for a given amount of pollution prevention because technical information and capital financing are harder for them to acquire.