Analyze how taxes or emissions standards could reduce the economic inefficiency that arises in a competitive market with a negative externality.

Let's analyze in the case of manufacturer's emission that cause polution

Usually, these pollution-producing companies are regulated to pay several amount of money in order to rehabilitate the environment that caused by their harmful material.

This is really inefficient, if they have to repair it, why allow them to destroy the environment in the first place?

That's how emission standards could reduce the inefficiency