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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The Sectoral Competitiveness Issue – Ex post Studies

While economists have set out the desirable features of market based instruments for environmental policy, those theoretical perceptions are rarely met in practice. Since governments cannot design and implement policy measures without taking account of political realities, there will usually be a disparity between theory and practice. First, while economists may concentrate on “optimal” instrument design serving one overriding goal – economic efficiency –, political reality may demand that other goals, which are not necessarily consistent with each other, also play a part in practical design and implementation.

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