ABSTRACT
It is certainly true that basic judgements on the standards of and the requirements for sustainability, i.e. for life on this earth, lie outside the realm and scope of the ‘disembedded’ economic system – and hence to a large extent also outside the focus of the prevailing economic theory. Yet the continuing deterioration of the environment in many parts of the world, the imminent danger of a drastic change in climate and the destructive effects of continual high unemployment have created a new interest for those economists who have since the early 20th century analysed these evils inherent in market economies and proposed some solutions. One possible instrument to fight pollution and increase employment will be the main subject of this article: environmental taxes1.
