European governments could reduce income tax, increase innovation and cut pollution if they introduced "well targeted environmental taxes" and recycled the revenues back into the economy. That was one of the findings from a pair of reports on environmental tax reform (ETR) published by the European Environment Agency (EEA) last week. In the reports released on 9 January, ETR is defined as the "shift of the burden of taxes, for example from labour to environmentally damaging activities, such as unsustainable resource use or pollution".
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