Human capital is an important asset of a country for the economic development. Due to air pollution human capital cannot be utilized properly and net national product and gross domestic product of a country decreases. Green Accounting contains a beneficial economic model where government pursues optimal economic policies. The willing to pay system among workers is beneficial to the government, factory owners and workers of a country. The optimal environmental tax should be less than the marginal environmental damages; since the presence of pre-existing distortionary taxes, increasing the welfare costs is associated with the overall tax code. The reduction of pollution causes the benefits of health by supplying maximum labors to create benefit-side tax interactions, which will tend to reduce the optimal environmental taxes. The book also investigates some policies that would influence people to drive fewer miles and to buy smaller cars, use better pollution control equipment, and cleaner fuel.