ABSTRACT

Due to rapid economic development and population growth, many Asian countries are experiencing deteriorating environmental pollution and natural resource depletion. Environmental taxes, applied more extensively in the European Union, are still relatively new in many Asian countries. Although economists often prefer market-based instruments like environmental taxes to correct externalities or distorted prices to achieve cost-effective goals, in practice commandand-control measures are still dominantly adopted, especially in Asian countries. In recent years, however, environmental taxation policies are playing increasing roles in environmental policymaking in Asian countries.