Chapter 7. Concluding Thoughts
Author:
Ian W.H. Parry https://isni.org/isni/0000000404811396 International Monetary Fund

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Mr. Dirk Heine https://isni.org/isni/0000000404811396 International Monetary Fund

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Eliza Lis https://isni.org/isni/0000000404811396 International Monetary Fund

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Shanjun Li https://isni.org/isni/0000000404811396 International Monetary Fund

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Abstract

Encouraging environmentally sustainable growth is a problem faced by all countries. The beauty of fiscal instruments such as environmental taxes or tax-like instruments is that (albeit with some important caveats about base targeting, exploiting fiscal opportunities, and use of complementary instruments) they can achieve an efficient balance between environmental and economic concerns—if they are set to reflect environmental damage.

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