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Environmental taxes


At present it is not possible to answer the question: 'do environmental taxes really influence behaviour?'in a global context. However, some empirical work performed in the UK by PricewaterhouseCoopers on the impact of environmental taxes sought to understand the impact of environmental taxes on behaviour. Data was collected in 2007 from 151 companies representing a mix of types of commercial activities and size of companies. The report concluded that of the seven taxes classed as environmental taxes by the Office of National Statistics, the impact on behaviour was varied. For further information, please see Saving the planet - can tax and regulation help?

However, PricewaterhouseCoopers sees environmental taxes as having the potential to be used to change behaviours. Further research is required to assess the extent of these taxes and their effectiveness.