LEGAL ISSUES ON ENVIRONMENTAL TAXATION

Abstract

This paper considers the role of environmental taxes both as instruments for improving the environment and as a source of revenue for funding economic development. It reviews the general case for environmental taxes and the particular issues that arise for the adoption of such taxes. It also discusses the possibility for political acceptance of such taxes when tax revenue is linked to the goal of economic development. The revenue potentials of environmental taxes are evaluated with special reference to a carbon tax. It is found that this tax alone has the potentials to raise sufficient revenue to finance government goals. In doing this, we will examine: Why Use Environment Taxes and Scope; The General Theory of Environmental Taxation; Global Externalities; Tax Designs and Political Acceptability; Location and Existence of Environmental Taxes in Nigeria; Revenue Potential of Environmental Taxes; Conclusion and Remarks.

Keywords: Environmental, Taxation, Funding, Political, Revenue, Carbon.