Environmental Tariff

AAA

DEFINITION of 'Environmental Tariff'

A tax placed on products being imported to or exported from countries with unsatisfactory environmental pollution controls. An environmental tariff is, in effect, a sin tax, designed to make trade with environmentally negligent countries less desirable.


Also known as a "green tariff" or "eco-tariff."



INVESTOPEDIA EXPLAINS 'Environmental Tariff'

The United States began implementing environmental tariffs in 1991. Although such tariffs are generally put in place to discourage trade with countries that have dubious environmental standards, various studies have shown that taxes and regulations have had little impact on international trade. Nonetheless, more and more negative pressure is being brought to bear on companies that trade with polluters and human rights violators.

RELATED TERMS
  1. Free Trade Area

    A group of countries that invoke little or no price control in ...
  2. Tariff

    A tax imposed on imported goods and services. Tariffs are used ...
  3. Condemnation

    The seizure of a property by a public authority for a public ...
  4. Most Favored Nation Clause

    A level of status given to one country by another and enforced ...
  5. Sin Tax

    A state-sponsored tax that is added to products or services that ...
  6. Export

    A function of international trade whereby goods produced in one ...
Related Articles
  1. Changes In Tax Legislation And Regulation
    Taxes

    Changes In Tax Legislation And Regulation

  2. Everything You Should Know About Corporate-Owned ...
    Insurance

    Everything You Should Know About Corporate-Owned ...

  3. The Dark Side Of The WTO
    Economics

    The Dark Side Of The WTO

  4. Investment Misselling A Global Problem
    Personal Finance

    Investment Misselling A Global Problem

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center