Emission charges



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

Citation
Tietenberg, Tom (Lead Author); Sidney Draggan (Topic Editor). 2006. "Emission charges." In: Encyclopedia of Earth. Eds. Cutler J. Cleveland (Washington, D.C.: Environmental Information Coalition, National Council for Science and the Environment). [First published in the Encyclopedia of Earth September 21, 2006; Last revised October 25, 2006; Retrieved November 20, 2008]. <http://www.eoearth.org/article/Emission_charges>
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