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Teoretical Aspects on the Use of Green Taxes. One of the central goals of a green economy would be to make prices reflect true costs. At present, prices place an artificially low value on non-renewable natural resources and completely ignore external costs – to the air, the water, the soil, to future generations, to workers’ health. The whole economic system is geared to keeping these costs ‘externalized’. A green economy would adjust prices to include real costs and would institute a system of ‘green taxes’ to drive this forward. Green taxes began with the simple aim of discouraging people from damaging the environment by making them pay for using natural resources. For example, burning fossil fuels in power stations causes acid rain; it damages the environment and should be taxed. Raising the tax on motor fuel would encourage people to use more energy-efficient cars or to use them less, or both. Taxing the dumping of waste in landfill sites would encourage recycling and alternative ways of dealing with waste and might help to reduce the total amount of waste we create.

Keywords: air pollution, environmental taxes,environmental restoration, taxation.