Green Taxes: purposes, benefits and limitations

Impuestos Verdes: propósitos, beneficios y limitaciones

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Elvia María Jiménez Zapata
Ginna Tovar Cardozo

Abstract

This study addresses green taxes, highlighting their role as economic tools to encourage sustainable practices and mitigate climate change. It is shown that these taxes can increase environmental awareness and induce significant changes in consumption and production patterns, encouraging both consumers and companies to opt for more sustainable alternatives. In addition, the capacity of green taxes to generate additional income is highlighted, which can be used to finance sustainability and clean technology projects. However, key challenges are identified, such as the resilience of certain economic sectors, the risk of carbon leakage, and the impacts on consumer prices and international competitiveness. This analysis highlights the importance of careful design of green taxes to maximize their environmental and economic benefits while minimizing adverse effects. It is concluded that, although green taxes are valuable tools to promote sustainability, their success depends on a balance between environmental effectiveness, social justice, technological innovation and international cooperation.

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