Environmental Tax Policy Reforms in the European Union

This chapter provides an overview of the environmental tax policy system in the European Union. The different kinds of environmental taxes, their quantitative use in the member states as well as the factors that influence the potential for tax reforms are explained. Reference is also made as to how environmental fiscal reforms can contribute to a Green Economy. The principles and the motivational factors for an Environmental Fiscal Reform (EFR) are explained. The experiences and the practices of European and Asian countries are presented and policy lessons learnt are drawn. Finally the chapter concludes by referring to the environmental fiscal reform prospects.