chapter  10
15 Pages

Environmental Taxes: Practical Limits and Potential

The main planks of environmental fiscal reform-cutting payments to polluters, capturing more resource rents, judiciously subsidizing environmental protection, taxing environmental harm, and cutting conventional taxes-can be powerful tools precisely because they are designed according to incisive principles. Those who harm society should be taxed rather than subsidized. Human labor and entrepreneurship should be taxed less, and exploitation of nature should be taxed more.