environmental tax

Ecology-motivated government charge

An environmental tax is a levy designed to incentivize behaviors that reduce environmental harm or promote sustainability.

Unlike general taxes, it targets specific activities or goods, such as carbon emissions, fuel consumption, or waste generation.

Early examples include Sweden’s carbon tax (1991), which charges per ton of CO₂ emitted.

Environmental taxes often use mechanisms like carbon pricing or pollution taxes to internalize external costs, making polluters financially accountable for environmental damage.

The government introduced an environmental tax on single-use plastics to curb pollution.

Related

climate change · green · sustainability · fossil · fossil fuels · gas guzzler · penalty · incentive · climate · footprint · regulation · rebate · gasoline · diesel · clean energy · smog · offset · permit

Opposites
fiscal mechanism

environmental taxtax credit

Direct reduction of liability

tax exemption · tax break · tax rebate · government grant · direct payment

environmental policy approach

environmental taxderegulation

Removing governmental business restrictions

non-intervention · pollution tolerance · self-regulation

Family

environment, environmental, environments, environmentalist, environmentalism, environ, environs, tax, taxes

Familiarity
Top 500,000
Profile
Used worldwide · Timeless · Abstract · Rated G