Fiscal Policy Instruments and Green Development

The years since the 1992 Earth Summit in Rio de Janeiro have seen many solutions being put forward to address the climate crisis. Those that involve technologies have, in many cases, been pursued with vigor, bringing about cost reductions. Those that involve increases in the cost of fossil energy, or that directly seek to change people’s lifestyles, have been much more difficult to implement.

Carbon and other environmental taxes, if set at an appropriate level, can help to increase social welfare. However, such instruments can be extremely difficult to implement. Fiscal systems are among countries’ most sensitive institutional structures, and no two are exactly the same, so there is no one-size-fits-all approach to carbon or other environmental taxation.

Fiscal Policy Instruments and Green Development addresses a wide variety of topics that will prove useful for policy makers tackling the challenges of realizing green development. The chapters and discussions aim to enhance knowledge about the benefits and opportunities of green fiscal policies to contribute to sustainable development and recovery.