This book reviews the policies adopted towards protection of environment, abatement of pollution, green initiative legislation in India under the purview of several Ministries & other government bodies, and the basic approaches to Environmental Policy in general adopted in various Countries in the form of Eco-tax, Subsidies, Pollution Permits, Refundable Deposits for Pollution control, Allocation of Property Rights, Government Investment Programmes etc. It also concentrates on the theoretical explanation of Sustainable Development which includes economy-environment linkages focusing on Ministry of Environment, Forest and Climate Change’s initiatives towards Sustainable Development. The authors try to explain the feasibility of adopting Market Based Instruments (MBIs) such as ecological tax (eco tax) to regulate behaviour of individuals/firms towards environment and argues that under prevailing constitutional and legal framework in India, it can be imposed by the central government as part of Union budget (Finance Act) and also under the Environment (Protection) Act, 1986.