Ecological fiscal reform (EFR) can be used to address a host of environmental issues. The following examples are provided to give users an idea of the range of issues that have been addressed through the implementation of EFR policies:

Nitrogen Oxide Emissions - Sweden taxes nitrogen oxide emissions from large combustion plants engaged in energy production. The revenue from the tax finances rebates to energy producers in proportion to their relative energy production.

Excess Manure - Both Belgium and the Netherlands levy surplus manure charges based on emissions of phosphorus and/or nitrogen in excess of environmentally acceptable maximum loads per hectare.

Land Conservation - Canada has provisions in its Income Tax Act that promote the donation of ecologically sensitive lands, covenants, easements and servitudes for conservation purposes to the Crown, a qualified registered charitable organization or any incorporated Canadian municipality. A donation qualifies for a 100% income tax deduction.

Carbon Dioxide Emissions - Sweden, Norway, Denmark, the United Kingdom and Finland levy charges on carbon dioxide emissions.

Solid Waste - The United Kingdom taxes waste going to landfills. The revenue from the tax finances reductions in employers' National Insurance contributions.

Hazardous Waste - Both the state of Vermont and Denmark have EFR policies that address issues associated with hazardous waste. Vermont levies higher tax rates on hazardous waste than any of the other U.S. states. The Vermont hazardous waste tax is based on the quantity of hazardous waste generated, as well as the ultimate destination of the waste - that is, whether it is destined for recycling, treatment or land disposal. The majority of the tax revenues are deposited into an environmental contingency fund used to mitigate the environmental impacts of hazardous waste and to improve hazardous waste management throughout Vermont. Denmark has made a concerted effort through the use of EFR policy to reduce hazardous waste and toxic chemicals in the country. The Danish government has agreed to eliminate emissions of all hazardous chemicals into the environment by 2020. To that end, it has introduced taxes on chlorofluorocarbons (CFCs), halons and chlorinated solvents.

Transportation - Numerous countries have tax differentials for fuels, which reflect, to a certain degree, the environmental impacts associated with the use of the particular fuel. British Columbia, for example, exempts natural gas and ethanol and methanol blends of 85% or more from provincial fuel taxes. Similarly, almost all OECD countries that still allow leaded fuel tax leaded and unleaded fuel at different rates.

Congestion - In Italy, Milan has introduced a peak period area-licensing scheme, whereby car owners must buy a permit to take their vehicles into the city during certain times of the day.

Toxins - The state of Connecticut recently implemented a policy to help reduce hazardous waste and associated impacts from dry cleaning facilities in the state. Under this program, dry cleaners are eligible for up to $50,000 (U.S.), to be used to offset site remediation costs and implement pollution prevention measures within the facility. The funds are financed by a 1% surcharge on dry cleaning services in the state.

Material Throughput - Various product charges are in place around the world to try to reduce material throughput. For example, product charges are levied on batteries, pesticides, beverage containers, plastic bags, throwaway cameras and razors, industrial packaging and disposable cutlery.

Automobiles - Several countries, including the United Kingdom, Denmark and Germany, levy charges to discourage the purchase of high-polluting vehicles. In these policies, charges on vehicle sales are based on the relative emissions associated with a particular vehicle. Other countries have implemented programs to encourage the purchase of low-emitting vehicles. For example, the U.S. Energy Policy Act of 1992 included a federal tax credit on the purchase of an electric vehicle. As well, the U.S. National Energy Plan, recently released by President Bush, includes a plan to set aside $4.2 billion (US) over 10 years to finance a temporary income tax credit available to those who purchase hybrid and fuel cell vehicles. In late 1997, when Toyota's Prius was introduced in Japan, tax incentives and manufacturer subsidies helped to lower relatively high upfront costs by $2,000 (US) to $3,000 (US).