Environmental Taxation

1. Introduction

In response to the growing threat of climate change, OECD member countries have pursued effective strategies to regulate activities and industries with the most significant negative environmental impacts. Among the various policy tools considered, the OECD has identified environmental taxation as one of the most effective mechanisms for driving behavioral change.

In this context, environmental taxes are intended to encourage both industries and consumers to shift toward cleaner alternatives by internalizing the environmental costs of pollution. This approach is expected to reduce harmful emissions, improve public health, and promote sustainable development.

However, despite the theoretical strengths of these fiscal instruments and the potential advantages for many countries, significant challenges remain in integrating environmental taxes into domestic legal frameworks. The central issue addressed in this thesis is whether Latin American OECD member countries are S. 208able to implement environmental taxes in line with the polluter pays principle while ensuring fairness and efficiency.

This thesis focuses exclusively on Latin American countries as this region exemplifies key ...