This study examines the causes, consequences, and economic implications of environmental pollution by examining the concept of environment from economic and social perspectives. Accelerating industrialization, population growth, and the reckless consumption of natural resources exacerbate environmental problems, jeopardizing sustainable development goals. Therefore, supporting environmental policies with economic tools is critical. The study provides a detailed analysis of environmental taxes, fees, public spending, subsidies, and regulatory policies used for environmental protection. Environmental taxes encourage environmentally responsible behavior by increasing the costs of polluting activities, while public spending and subsidies contribute to the development of environmental technologies. However, it is emphasized that fiscal instruments alone are not sufficient; legal regulations, public awareness, and international cooperation are also essential for effective environmental management. As a result, the correct design and application of economic tools to solve environmental problems is considered a fundamental requirement for both ensuring environmental sustainability and protecting economic prosperity.