Ecotaxes on Polluting Inputs and Outputs

Economic instruments have become increasingly popular worldwide as a strategy to achieve environmental goals.

The National Environment Policy, 2006 recommends the use of economic instruments to supplement regulation.

Unlike emission taxes or tradable permits which require legal and institutional capacity, ecotaxes on polluting inputs and outputs can be easily implemented through the existing system of central taxes.

For dispersed non-point source pollution, a tax on input/output is an ideal instrument for controlling pollution.

This volume contains ecotax proposals for coal, automobiles, detergents, paper and pulp, pesticides, fertilisers, lead acid batteries and plastics.