GREEN TAXES, WASTE MANAGEMENT AND POLITICAL-ECONOMY

Interest among policymakers has recently focused on the role, efficien cy and effectiveness of so-called 'green taxes'. This paper surveys re cent developments in the context of waste management policy and the em ergence of policy instruments such as recycling credits and the landfi ll tau. it is concluded that there is an important role that economic instruments can play in this policy area. The inherent efficiency gain s that economic instruments may provide deserve to be highlighted. The application of such instruments in the current political economy sett ings will however serve to reduce such efficiency gains, as multiple a nd conflicting policy objectives are introduced by the political proce ss. While there are instances where appropriately designed environment al taxes can provide an important element of environmental policy, the re is a danger nevertheless that an ill-conceived comprehensive 'envir onmental tax reform' could be detrimental. Such reform could result in a deterioration of environmental quality; and/or an increase in econo mic costs; and/or undesirable social consequences. (C) 1998 Academic P ress.