Greening the Budget regards the fundamental cause of environmental degradation as government and market failure and proposes the use of budgets as an instrument of environmental policy to rectify this problem. The book focuses on the elements of the public budget which currently affect the environment and explores the scope for greening both revenue and expenditure through specific measures. The authors begin by considering the effects of removing environmentally damaging subsidies and the potential for correcting market failure by way of appropriate pricing. They go on to examine the introduction of new taxes following the 'polluter pays' principle and, in contrast, the allocation of incentives for those who take the environmentally preferred course of action. They also explore the environmental and budgetary implications of European Union financial transfers by looking at a case study of the agricultural sector. The book concludes by addressing public purchasing and administration. This book will be of particular interest and value to scholars of environmental economics, researchers involved in environmental policy, and environmental consultants, practitioners and policymakers.

Market-based instruments are becoming the environmental management tool of choice and have provided a new perspective on the conventional wisdom about policy instruments. This book analyses the complexities of designing and implementing market-based instruments using case study experiences from the Nordic countries, Japan, France, The Netherlands, Germany and Britain, where a range of green taxes have been introduced. The contributors examine the role of political processes in designing, introducing and implementing green taxes and charges and analyse the extent to which political concerns complicate the approach favoured by environmental economists. The authors then focus on the implementation of market-based instruments to achieve environmental objectives and offer an ex-post evaluation of different countries' experiences with economic instruments. This volume brings together contributions from political scientists and environmental economists and will prove invaluable for academics, practitioners and policymakers interested in the experiences of countries where market-based instruments are well established.