ABSTRACT

The ozone-depleting chemicals tax is the most significant instance of a classic environmental tax yet implemented in the United States. It is a key component of the aggressive US ozone protection policy, and has been effective in stimulating reductions in the production of ozone-depleting chemicals (ODCs) well beyond those required by the Montreal Protocol 1 and the subsequent London Revisions. 2 It incorporates a number of innovative features that provide a useful model for others attempting to design major environmental taxes. Finally, it has been a significant source of revenue for the federal government.