Abstract
Research provides increasing evidence favouring the use of economic instruments to deliver policies promoting sustainable development on a discretionary basis at local levels. There are substantiated clear economic as well as environmental gains from the application of such tools either as alternatives or supplements to traditional command‐and‐control environmental regulations. Examples of the potential of these tools as a means of delivering local sustainability are examined, in the light of permissive new legislative powers available to UK local authorities. Environmental taxation of road space oVers an obvious point of departure in attempts to tailor fiscal instruments to the needs of local communities in a sustainable fashion, with the users of road space serving to provide revenue for local traffic improvements.
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