The Use of Taxation Incentives to Create New Eco-Service Markets

Abstract

Environmental taxation reform is an important impetus towards sustainability. However, governments have demonstrated a limited appetite to adopt 'green taxation' such as shifting from taxes on employment to taxes on energy use. We suggest a politically modest tax-reform model has a better chance of adoption than radical changes. This chapter demonstrates the potential to combine the magnitude of the investment required, relative to the capacity of private citizens and government to fund the needed work.