PIP: Existing policies to control pollution are inadequate especially those in developing countries. National economic policies do not consider environmental effects. For example, some governments subsidize fossil fuels, water, pesticides, and fertilizers. Those governments in the process of restructuring pollution control policies must seek ways to reduce their conceivable side effects on economic growth, revenue raising, and equity. They need to consider key administrative, technological, and institutional drawbacks and depend on numerous fiscal means to complement more traditional pollution control mechanism. They must intervene to prevent or reduce pollution since markets do not consider the interests of those affected by pollution. They can do so by imposing regulations on polluters, taxing emissions, limiting the amount of pollution, subsidizing cleaner options, and/or assigning and enforcing property rights. Pollution and environmental quality standards im most developing countries parallel those in the US and in Europe, but these standards are not effective because monitoring, enforcement, and regulatory capacities are inclined to be weak. In the early phases of pollution control, governments should tax fixed inputs (e.g., fuels) based on the level of expected emissions. These taxes would advance public budgets. For transnational pollution problems, affected nations should negotiate together and consider international transfers to support environmental solutions. When developing policy, governments must consider the competitive behavior of the marketplace and how people and companies will react to policy tools. These prudent considerations will define the likelihood of reducing costs and strengthen the efficiency of intervention thus determining the ability to afford environmental protection.