ABSTRACT
Sustainable development of the economy requires at least two things: first that economic activities such as industry, fisheries, forestry and agriculture are carried on in a way that is compatible with the natural preconditions of the local ecology, and second that the development of the economy itself is coherent requiring, among many other things, a certain degree of long-run balance in current accounts and government accounts. The first of these is ecological management and the second economic management. We shall discuss in this chapter some issues that are related to both types of management. Our principal focus will be on taxation which we think is a potent instrument of environmental policy and also has the advantage of bringing in much needed public revenue.
