There has been increased environmental pollution in most parts of the world, and it has become an economic problem. It has been a duty of the government and other relevant authorities to offer a solution to reduce or eliminate environmental pollution. Several studies have been conducted to establish the cause of the increase in environmental pollution and the possible measures to be implemented to reduce pollution. Several methods have been recommended to the government and other authorities to fight pollution; there is the traditional regulatory approach also referred to as command-and-control approach. The method sets specific targets and standards on all polluters of the environment. There is a current approach that has been introduced that use market-based policies that apply the market forces to regulate the polluters of the environment. The latter method has proved to be the most affected, and it is now adopted by most governments. Its adoption has proved that markets hold a critical role in solving the environmental problems.