Market-based approaches refer to strategies that utilize market signals and economic incentives to address social or environmental issues. These methods often involve mechanisms like cap-and-trade systems, where companies can buy and sell allowances for emissions, encouraging them to reduce pollution efficiently. Another example is carbon pricing, which assigns a cost to carbon emissions, motivating businesses to innovate and lower their carbon footprint. By leveraging the power of supply and demand, market-based approaches aim to create sustainable solutions while promoting economic growth and efficiency.