Environmentally related taxes are increasingly used in OECD countries, and ample evidence of their effectiveness is now available. Great potential for wider use of these environmental policy instruments remains, however, provided they are well designed and that their potential impact on international competitiveness and income distribution are properly addressed. This book provides a comprehensive discussion of the environmental and economic impacts of applying environmentally related taxes. In particular, it looks at how to overcome obstacles to their implementation. It also discusses the environmental and economic effects of combining such taxes with other instruments for environmental policy.