This paper exp lores the issues and challenges to model government and the environment variables.[16] did not even conclude on fiscal activism,[20, 21, 22 and 23] did not justify an environmental agreement in their economic models,[28] talks about the unsettled problems related to natural resource. In[1], it is argued that the State is of the utmost importance for environ mental management. However, we try to include the government functions in his model to greenhouse gas emissions and found that the cause-relation began to deteriorate.[2]´s game, wh ich discusses land reform and deforestation in Brazil, turned govern ment into only a commit ment related to only a side of the land conflict. Using their game , we consider REDD's impact on Brazilian land refo rm policies. The effect of REDD on the conflict and deforestation will depend on the strength of the governance. Finally, we felt the need to observe environmental public spending. We considered the budgets from Brazil and the UK. The environ mental issues still require greater p riority, especially in Brazil. The Brazilian federal budget for the environ ment suffers fro m volatility and a lack of focus. We observed that despite centuries discussing the government functions and the importance of the environment, the modelling of these two variables still demands the inclusion of government effect iveness, institutions, human nature and uncertainties. Our general conclusion is that the comprehensiveness and effectiveness of government are not properly revealed in the economic models. We argued for a bounded rationality approach.