Title: What are the Green and Environmental Taxes? - Iberdrola
Headings: Environmental taxes make way to protect the environment
ENVIRONMENTAL TAXES
Environmental taxes make way to protect the environment
WHAT ARE ENVIRONMENTAL TAXES?
THE BENEFITS OF ENVIRONMENTAL TAXES
ON WHAT ARE ENVIRONMENTAL TAXES APPLIED?
PRINCIPLES FOR PROPER ENVIRONMENTAL TAXATION
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Content: The tax must be credible and its rate predictable in order to motivate behaviours that help protect the environment. Environmental tax reform revenues can be used as additional revenue or help to reduce other taxes. Distributional impacts should be addressed through other policy instruments. Competitiveness concerns need to be carefully assessed, not to obstruct taxes but to offer the possibility of coordinating policies and establishing transitional relief periods. Clear communication is critical to public acceptance of environmental taxation. Environmental taxes may need to be combined with other environmental policy instruments to address certain issues. However, the implementation of the various taxes and the way environmental taxation is coordinated often fail to reflect these principles. Some of the most common criticisms include: Lack of connection towards the negative externalities that generated the tax. Lack of environmental consistency in the design due to not being based on environmental damage.