What type of economic policy would a government implement to curb excessive greenhouse gas emissions?

A government looking to curb excessive greenhouse gas emissions typically aims to create a clear financial incentive for businesses and individuals to reduce their emissions. Implementing a ban on production of certain harmful emissions would directly limit the activities contributing to greenhouse gases. However, a tax on production serves as an economic incentive, making pollution more costly for producers. By combining a ban on certain high-emission activities with a tax on emissions, the government can effectively discourage practices that lead to greenhouse gas emissions while promoting more sustainable alternatives.

This dual approach reinforces the idea that excessive greenhouse gases are not socially desirable. The ban stops the most harmful practices outright, while the tax applies economically to all other emissions, encouraging reductions across the board. Thus, the implementation of both policies can create a multifaceted strategy that leverages direct regulation along with market-based mechanisms to drive down emissions comprehensively.