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Environmental Taxation - OECD

September 2011 1 Environmental Taxation A Guide for Policy Makers This guide is based on the OECD s recently issued book Taxation , Innovation and the Environment. Overview Environmental challenges are increasing the pressure on governments to find ways to reduce Environmental damage while minimising harm to economic growth. Governments have a range of tools at their disposal, including regulations, information programmes, innovation policies, Environmental subsidies and Environmental taxes.

The tax must be credible and its rate predictable in order to motivate environmental improvements. Environmental tax revenues can assist fiscal consolidation or help to reduce other taxes. ... particular types of abatement, even if cheaper alternatives are available.

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