Market Based Instruments

Market Based Instruments

National Experiences in Environmental Sustainability

Critical Issues in Environmental Taxation series

Edited by Larry Kreiser, David Duff, Janet E. Milne and Hope Ashiabor

This detailed book explores how market based environmental strategies are used in various countries around the world. It investigates how successful sustainability strategies used by one country can be transferred and used successfully in other countries, with a minimum of new research and experimentation. Leading environmental taxation scholars discuss this question and analyse a set of key case studies.

Chapter 3: Providing environmental taxes with an environmental purpose

Tatiana Falcão

Subjects: economics and finance, environmental economics, public finance, environment, environmental economics, environmental law, law - academic, environmental law, tax law and fiscal policy


The preservation of the environment among developed and developing countries alike, has been at the forefront of all the major recent international events. Over the past years there has been growing concern and awareness of the need to deal with the issue of climate change in an effective and determinant way. Unfortunately, the decision on whether or not to issue carbon taxing legislation goes through a very political process. But in times of economic downturn and crisis, governments are generally concerned about further damaging their popularity by introducing new taxes. That is the main reason why regulatory frameworks for the trading of carbon emissions permits, commonly referred to as Emissions Trading Schemes (ETS) have become so popular over the past years. By introducing an ETS, a country is in fact giving businesses and the private sector a new asset with which to trade and generate new revenues. The problem derived from this mechanism is that (so far) governments have not been able to consistently receive the cash funds they need in order to finance green actions such as the development of new green technologies, reforestation and afforestation3 of deforested areas, and stimulate the switch into greener types of energy.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information