Environmental Taxation

Fiona Gilson

1. Introduction

As governments worldwide step up their efforts to combat climate change, carbon taxes have emerged as one of the key tools for reducing greenhouse gas emissions. By attaching a monetary cost to carbon-intensive activities, carbon taxes aim to internalize the environmental externality of emissions thereby realigning S. 298market behavior with climate objectives. The increasing number of jurisdictions adopting or reforming carbon taxes, often under the pressure of commitments like the Paris Agreement or the European Green Deal, makes it essential to understand how legal design shapes their effectiveness and feasibility.

Despite the growing volume of literature on carbon pricing, much of the academic focus remains centered on economic modeling and policy effectiveness with less sustained attention to the legal and institutional design of carbon taxes. In practice, poorly structured legal frameworks have hindered implementation, reduced public and political acceptance, and introduced uncertainty in compliance. This legal ambiguity not only complicates enforcement but also undermines the environmental credibility of carbon taxation as a long-term policy tool.

The focu...