Why does the government have to regulate the pollution that

Why does the government have to regulate the pollution that is put into the environment? What type of externality is pollution and why is society not able to bring about equilibrium in markets? Reply to all parts of the question in paragraph form.

Solution

Government have to regulate the pollution because its duty is to work towards sustainable growth with healthy population. When the population becomes unhealthy or deprived of clean natural resources in the process of development, then it becomes an irreparable damage to the whole society.

Pollution is a negative externality. Society as a whole may not feel the heat for the minor changes in the environment and also the decisions on establishing factories and other pollution causing agents is not determined by the society. So the major role of bringing equilibrium rests with the government.