Green Fiscal Reform for a Sustainable Future

Green Fiscal Reform for a Sustainable Future

Reform, Innovation and Renewable Energy

Critical Issues in Environmental Taxation series

Edited by Natalie P. Stoianoff, Larry Kreiser, Bill Butcher, Janet E. Milne and Hope Ashiabor

This timely book focuses on achieving a sustainable future through the reform of green fiscal policy. Green fiscal policies help not only provide the needed financing but may also serve the Sustainable Development Goals adopted by the United Nations in 2015. In this volume environmental tax experts review the development of fiscal carbon policy, consider the impact of green taxation on trade and competition, analyse the lessons learned from national experiences with fuel and energy pricing, and evaluate a variety of green economic instruments.

Chapter 7: Potential environmental impacts of the Australia–South Korea Free Trade Agreement and fiscal intervention

Seck L. Tan

Subjects: environment, environmental economics, environmental law, environmental politics and policy, management natural resources, law - academic, environmental law, tax law and fiscal policy, politics and public policy, environmental politics and policy


‘It is perfectly possible for a nation to secure sustainable development –in the sense of not depleting its own stock of capital assets – at the cost of procuring unsustainable development in another country’ (Pearceand Warford, 1993). This quote serves to remind us that a nation’s sustainable development achieved at the expense of environmental degradation in another nationis not true sustainable development. This chapter aims to investigate the impacts of trade liberalization on Australia’s ecosystem using a macroeconomic analysis of environmental utilization, and providing policy options available to protect the natural resources in Australia. Such a strategy allows natural resources to realize its full economic potential (whilst being maintained in a closed-loop arrangement) and offers recognition to the ecosystem as an essential player in sustainable trade development. Using an empirical approach, this chapter offers an explanation of the utilization of Australia’s environmental capital and trade (exports and imports) trends with South Korea (FTA partner), as well as contrasting the observed relationship with South Korea. The chapter makes the case that while the expected outcomes from FTA agreement with South Korea will benefit the Australian economy, it is highly recommended that there be initiatives in place to ensure that trade will be just as beneficial to Australia’s environment. Should free trade result in environmental degradation, the anticipated outcomes will not be a true representation of the benefits from free trade. Although the study is based on historical data from 1996 to 2013, it seeks to establish a relationship for Australia’s environmental utilization and trade trends with South Korea and offers a prediction during the FTA tenure.

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