Environmental tax reform and its opportunities and threats for sustainable development

Abstract

Environmental tax reform looks at first glance like an ideal tool for achieving sustainable development - it affects environmental not-friendly activities and products by increased tax rates, while at the same time takes into account the social dimension and also supports economic system by emphasis on using new technologies. Aren't there really any threats for sustainable development? The main goal of this paper is to identify potential risks and also opportunities for sustainable development following implementation of environmental tax reform.