Environmental taxation and well-being in the context of globalisation and sustainability

Environmental taxation exemplifies and emphasises the global dynamics of sustainability. Combining environmental taxation and well-being can contribute to broad aims of sustainability, such as the survival of humankind, protection of the biosphere and its biodiversity, social solidarity and justice and the preservation and development of our natural and cultural heritage. As a result of environmental market failures, hardly any market price reflects the true overall cost. Environmental taxation can provide suitable counters to such market failures. Global dynamics of sustainability clearly show in issues such as marine litter, air pollution, and climate change. Recognising the reality of 195 different states, environmental taxes would often be most effective if true international cooperation would be achieved. Unilateral environmental taxes may trigger relocation or dumping/burning abroad. The choice for, and design of, environmental taxes affects the distribution of environmental burdens and benefits, now and in the future. Critical scrutiny is needed, for example, if effects of environmental taxes are particularly felt in certain regions or parts of the population, or if such taxes unfairly affect competition. In this chapter, and in relation to environmental taxes and the global dynamics of sustainability, practices and possible strategies are assessed, and recommendations are made.