Last week, the Knesset passed a new "Clean Air Law", which increases the financial responsibility of polluters for their actions. Supporters of this idea claim that individuals or companies that pollute must bear the real costs of pollution caused by them.
Pollution costs are usually "external", meaning they are not included in the price of the product, and therefore are ultimately subsidized by the public. Putting the responsibility for pollution costs directly on the polluter will help people and manufacturers internalize products' actual costs while increasing environmental awareness and making the economy more efficient, all at once.
The last Caesarea Forum dealt with environmental issues quite extensively, and one of the sessions was dedicated wholly to the topic of "a Greener Economy".