Environmental taxes in the European Union and their use as a means of environmental restoration

Abstract

Environmental degradation caused by intense human activities has allured scientific and social concerns. Environmental taxes are a part of a wider policy context integrating various tools, including pricing instruments, subsidies, and investment in public infrastructure. Environmental taxes are the only fiscal policy tool the revenue which can be used for environmental protection purposes. They are used in modern societies, as means of optimizing consumers’ and producers’ behavior. These taxes generate revenues that can be used by governments to invest in environmental protection projects or in the effective management of natural resources. Eastern European countries’ environmental taxation regime, is a successful example since appropriate policies and actions were used for environmental degradation resilience along with the formerly degraded land restoration and funding environmental information dissemination programs for local communities. The present work aims to unveil successful practices adopted related to the implementation of environmental taxation in European countries and the use of their revenues in projects and actions to protect the environment and limit the anthropogenic impacts. In addition, a comparative analysis of individual EU countries efficiency in the use of taxation for mitigation of natural environment degradation is conducted with significant findings for policymakers.