ABSTRACT
This chapter considers the construction sector and looks at its environmental impact. It shows how the fiscal structure currently impacts upon construction and how this in turn impacts upon the environment. The chapter explores what fiscal measures might be taken if economic instruments are to be used for environmental protection in this sector. It focuses on buildings and in particular on the environmental implications of new buildings and the refurbishment of existing structures. The construction of buildings can have either a positive or a negative effect on the environment which makes it somewhat different from other sectors. In the case of the historical or cultural attributes of a building, it may be that some would prefer to see the old being replaced by the new. The acquisition costs of commercial buildings can also be written off which is probably an environmental plus, given that such buildings are more likely to fall into disrepair if left unsold.
