Is it possible to design a universal legal model for environmental taxation?

Abstract

Taxation methods are increasingly being used as tools to achieve environmental objectives, though the risks of ill-conceived environmental taxes are severe. The thesis offers lawmakers and policymakers guidance as to choices of tax measures, and how such methods can be utilised effectively, by exploring the various issues and decisions facing policymakers in the introduction of such methods. It does this by investigating means by which environmental taxes can be effective in changing consumption choices and behaviour towards the environment, which requires an examination of a series of pertinent issues which any policymaker is advised to respond to before implementing such tax methods; such as how the environment can be valued and how to decide which taxpayers should bear the burden of environmental taxation. The overarching objective for the thesis is to set out a design for a universal legal model for environmental taxation, and question whether this model can be utilised by policymakers to achieve environmental objectives in any jurisdiction. The findings of all chapters will contribute to the purposeful design of such a model. This initially requires a fundamental examination of the nature of tax itself, before considering the concept and utility of tax incentivisation. The thesis then questions whether a tax can philosophically be considered an ‘environmental tax’, and seeks to distinguish this from revenue-raising measures through its behaviour-changing functions. The design of such taxation is then considered, with the aim of achieving maximum benefits at minimum cost. In considering a variety of methods to achieve environmental policy, the thesis will identify methods to target environmental problems efficiently and in a manner which will prevent unintended consequences such as loss of competitiveness or other social ills. It is intended that the findings will be useful initially in contributing to the knowledge in this field, but further the answer to the overall thesis may help tackle the greatest challenge facing mankind in our time.