Emission charges are normally per unit taxes placed on emissions of specified pollutants. Effective use of emissions charges requires effective emissions monitoring so that the tax base can be reliably determined.

When monitoring is not sufficient, presumptive emission changes are sometimes used. Presumptive charges are based on a typical or average amount of emissions for a plant of that type. If the emitter can demonstrate that its emissions were lower than the presumed amount, it can qualify for a rebate on the difference between presumed and actual emissions. In effect, this shifts the monitoring responsibility from the government to the firm.

Further Reading
[1] International Experiences With Economic Incentives For Protecting The Environment (Washington: EPA-236-R-04-001) November 2004

Emission charges are normally per unit taxes placed on emissions of specified pollutants. Effective use of emissions charges requires effective emissions monitoring so that the tax base can be reliably determined.

When monitoring is not sufficient, presumptive emission changes are sometimes used. Presumptive charges are based on a typical or average amount of emissions for a plant of that type. If the emitter can demonstrate that its emissions were lower than the presumed amount, it can qualify for a rebate on the difference between presumed and actual emissions. In effect, this shifts the monitoring responsibility from the government to the firm.

Further Reading
[1] International Experiences With Economic Incentives For Protecting The Environment (Washington: EPA-236-R-04-001) November 2004