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The Political Economy of Environmentally Related Taxes

image of The Political Economy of Environmentally Related Taxes

Based on experience in OECD countries, this book provides a comprehensive discussion of the effectiveness of environmentally related taxes, of recent research on the environmental and economic impacts of applying them, an on their potential for wider use. In particular, it looks at how to overcome obstacles to their implementation. It also discusses the environmental and economic effects of combining such taxes with other instruments for environmetal policy.

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Environmentally Related Taxes Used in Instrument Mixes

Environmentally related taxes are seldom used in isolation to address a particular environmental problem. Most often they are used in combination with one or more other instrument categories, like direct regulations, subsidies, labelling systems, negotiated agreements, etc. OECD has for some time been studying the impacts on environmental effectiveness and economic efficiency of the fact that such instrument mixes are employed – instead of only one instrument being used per target set. Central to the work is how the different instruments interact in practice. This chapter presents some examples of instrument mixes used and highlights some of the main findings made in this work.

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