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The efficiency of the green taxes as instruments for Environmental protection

Dracea, Raluca and Cristea, Mirela and Ciupeanu, Daniela (2008): The efficiency of the green taxes as instruments for Environmental protection.

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Abstract

This paper focused on the green taxes, great actuality issue in the contemporary world. As research method, the paper is based on economical theory of externalities, their presence making the company to take decisions with different social effects. Starting from social cost and private cost of human activity, it is a debate regarding the internalization of external costs by applying the corrective taxes. The purpose of this paper it is the establishing of an optimal tax level which has as effect the decreasing of the overall cost of a negative externality (for example, the pollution) through controlling the external effects. Deriving from the analysis it has been disclosed that ideally the environmental taxes should be introduced over externalities source, meaning that taxes should report directly over emissions or environment services.

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