ABSTRACT
Although all US states pursue both economic development and environmental protection, these two goals are often seen as conflicting. The Louisiana Environmental Scorecard was a unique effort to unite environmental and development goals into a single tax measure. The Scorecard was designed to distribute tax incentives for economic development based on the applying firms’ contribution to the quality of life in the state, measured in both economic and environmental terms. Although the Scorecard was short-lived, remaining in place only for the year 1991 and then becoming the political casualty of a change in administration, the evidence suggests that during its one year of existence it was effective in inducing companies to improve their environmental record. The scorecard mechanism raises revenue while channelling economic development toward environmental sustainability (Farber, Moreau and Templet, forthcoming). It can easily be adapted to any jurisdiction which offers targeted tax incentives for economic development.
