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The Role of Fiscal Instruments in Environmental Policy

Author

Listed:
  • Katri Kosonen
  • Gaëtan J.A. Nicodème
  • Gaëtan J.A. Nicodeme

Abstract

Environmental protection is one of Europe's key values. The EU has set clear policy objectives to achieve its environmental goals. The EU has favoured market-based instruments, among which fiscal instruments to tackle the climate change problem. This paper takes a policy-making perspective and provides an overview of key issues on the role of fiscal instruments in energy and environmental policies. It describes fiscal instruments as cost-effective means to promote environmental goals and highlights in which cases taxes and other types of fiscal instruments can usefully complement each other to achieve environmental target.

Suggested Citation

  • Katri Kosonen & Gaëtan J.A. Nicodème & Gaëtan J.A. Nicodeme, 2009. "The Role of Fiscal Instruments in Environmental Policy," CESifo Working Paper Series 2719, CESifo.
    • Handle: RePEc:ces:ceswps:_2719
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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