Formation of Environmental Taxation: Principles and Approaches

Currently, environmental taxation is a recognized instrument of States’ environmental policy in their fight against climate change and in protecting the environment. The complexity of the tasks that States are facing in setting environmental taxes requires an analysis of macro and microeconomic indicators, as well as social consequences. The purpose of the paper is to study the implementation of the environmental taxation system. The paper examines the economic concepts of using taxes as a means of regulating the environmental sphere, determines the essence of environmental taxes and the principles of their organization. The paper analyzes various models and concepts of taxation, their advantages and disadvantages, determines the principles of building an environmental taxation system, and elucidates the ways to optimize the environmental tax system to achieve the best environmental and economic results. In addition, the author examines the potential obstacles faced by the State when introducing environmental taxation as an instrument of environmental regulation, taking into account the existing experience.