Environmental Fiscal Reform (EFR) has been championed by the OECD since the beginning of this century and by among others the International Monetary Fund (see this link). EFR, when properly designed and implemented, can meet environmental goals with net positive impacts on the economy in terms of GDP, government revenues, and employment. Reality is however complex. Concerns about sectoral competitiveness and concerns about hurting ordinary consumers have led to significant opposition.
Several developing countries have experimented with EFR as EFR has the added attraction of potentially contributing to poverty reduction and development goals.
To learn more about EFR download our Briefing here. Briefpaper_EFR