Environmental policy interacts with economic policy by prioritizing sustainable development and balancing environmental protection with economic growth. Governments aim to create regulations that promote green technologies and reduce pollution, impacting industries and job creation. This relationship often requires trade-offs; for instance, environmental regulations may increase operational costs for businesses, yet simultaneously foster innovation and new markets. Economic incentives, like tax breaks or subsidies for renewable energy, can drive compliance with environmental goals. Achieving harmony between both policies is crucial for long-term viability and resilience in the face of climate change.