Environmental Fiscal Reform for Poverty Reduction

This DAC Reference Paper outlines key issues faced when designing Environmental Fiscal Reform (EFR). EFR refers to a range of taxation and pricing measures which can raise fiscal revenues while furthering environmental goals. The objective is to provide insights and "good practice" on how development co-operation agencies can help developing countries take advantage of EFR approaches in both their development and poverty reduction strategies. Experience in many countries has shown that despite their potential fiscal, poverty reduction and environmental benefits, EFR measures are constrained by political and institutional factors. Overcoming these factors requires thorough analysis of the political context, followed by effective management of the reforms as an inclusive political process. Accordingly, following a review of the instruments of EFR and related technical issues, Environmental Fiscal Reform for Poverty Reduction focuses on the political economy and governance aspects of EFR.Organisation for Economic Co-operation and Development Staff is the author of 'Environmental Fiscal Reform for Poverty Reduction ', published 2005 under ISBN 9789264008687 and ISBN 9264008683.