This study evaluated the effectiveness of an air pollution fee strategy in Taiwan during the last ten years. An air pollution fee strategy has being conducted in Taiwan since 1995. The incentive strategy has become an important part of air quality management policy associated with the command and control approach. An air pollution fee is applied to stationary sources, mobile sources, and construction operations. The fee depends on the pollutants emitted, which include sulfur oxides (SOx), nitrogen oxides (NOx), and particulate matter. The air quality around Taiwan has being continuously improved and air pollutant emissions decreased significantly during the past decade. The occurrence of PSI (Pollution Standards Index) over 100, an unhealthful level, has decreased from 6.5% to 2.6%. Air quality has been improved by emission abatement. Emission inventories indicate that emission reductions were 42% for SOx, 23% for NOx, 26% for NMHC, 65% for CO, and 8% for TSP. Stationary sources contributed the great part of the emission abatement. Several programs have being conducted for stationary sources. These programs include a permit system, adoption of new emission standards for more source categories, a fugitive emission control program, a clean fuel program, and a pollution fee program. Several programs have being conducted for mobile sources too, including adoption of new exhaust emission standards for motorcycles/gasoline vehicles/diesel engines, a smoke check program, a clean fuel program, and a high-polluting vehicle retirement program. All these programs are clearly effective in reducing emissions. An air pollution fee strategy has been implemented successfully using incentives and command-control measures.