Metro Manila, like many cities in Southeast Asia, is badly affected by poor air quality. Legislation has failed to combat the problem due to inadequate regulatory enforcement and industry's cavalier attitude towards pollution. However a recent economic study has found that a solution to this crisis could be provided by taxation and other similar economic instruments. The study drew on a wide range of research and information to get an overview of the air pollution situation in Metro Manila. The study aimed to see if a market-based instrument such as a pollution tax would be an effective way to reduce pollution from the manufacturing and power generation sectors. The main conclusion was that such a tax - properly developed and implemented - could provide these highly-polluting industry sectors with an incentive to dramatically reduce their air pollution emissions.
