What if the government had to provide proper services to entice their constituents?

Re: if you can't subsidize industries ad infinitum, growth will eventually be capped which solves this situation on a more local level.

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I actually see a lot of solutions at the local level. For example, given the choice I would not live in a polluted area. Since we all share the soil, air, and water local protection won't fully solve the problem.

There are always going to be poorer areas though, like how the developed countries dump their e-waste in Africa or sending "recycling" to China.