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Is this statement true or false? What makes the statement true or false? Market based approaches...

Is this statement true or false? What makes the statement true or false?

Market based approaches for controlling pollution regulates pollution through market forces and incentives. Such policies can include taxes, subsidies, permit systems, and technology standards.

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TRUE market based approaches for controlling pollution regulates pollution through market forces and incentives . Such policies can include taxes, subsidies , permit systems and technology standards.

Regulators may impose taxes which are similar to the direct emission fees, however taxes are indirect instruments.

Regulators may impose subsidies to induce reduction in pollution.

Regulators may use tradable permits and create a market for pollution. In a tradable permit system, an allowable overall level of pollution is established and subsequently allocated among firms in the form of permits.

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