Government involvement is really important when it comes to reducing problems in microeconomics that affect everyone. Here are some simple ways the government helps:

1. Taxes and Subsidies:

   • Special taxes, like a carbon tax, are made to reduce bad effects on the environment. For example, if the government charges £30 for every ton of carbon produced, it can help lower pollution.
   • On the other hand, the government gives money (subsidies) to support good activities, like using renewable energy. In the UK, a program called the Feed-in Tariff helped solar energy production grow by 300% from 2010 to 2017.

2. Regulations:

   • There are rules, like the Clean Air Act, to help control pollution. Thanks to these rules, the amount of sulfur dioxide pollution dropped by 74% from 1980 to 2019.

3. Providing Public Goods:

   • The government also provides important services that everyone can use, like education and healthcare. In 2022, these services made up 43% of what the UK government spent.

In short, government actions—like taxes, rules, and public services—play a big role in making sure everyone can enjoy a cleaner and healthier environment.