Green Levy

AAA

DEFINITION of 'Green Levy'

A tax imposed by a government on sources of pollution or carbon emission. A green levy is aimed at discouraging the use of gas guzzlers and inefficient sources of energy, and encouraging the implementation of environmental-friendly alternatives. The term is most commonly used in relation to a tax on fuel-inefficient vehicles.

INVESTOPEDIA EXPLAINS 'Green Levy'

For example, a green levy introduced in Canada in March 2007 is applicable to new passenger vehicles such as cars and SUVs that have a fuel consumption of 13 liters (approximately three gallons) or more per 100 kilometers (about 62 miles).


Some critics of green levies claim that they amount to stealth taxes that hurt consumers by pushing up vehicle prices, but do little to curb emissions.

RELATED TERMS
  1. Green Economics

    A methodology of economics that supports the harmonious interaction ...
  2. Socially Responsible Investment ...

    An investment that is considered socially responsible because ...
  3. Green Investing

    Investment activities that focus on companies or projects that ...
  4. Carbon Credit

    A permit that allows the holder to emit one ton of carbon dioxide. ...
  5. Green Fund

    A mutual fund or other investment vehicle that will only invest ...
  6. Separation Of Powers

    An organizational structure in which responsibilities, authorities, ...
Related Articles
  1. Insurance

    Green Investors Get Heard

    Find out how to make your portfolio and the companies in it greener.
  2. Mutual Funds & ETFs

    Going Green With Exchange Traded Funds

    As investors become more environmentally conscious, the exchange traded fund market is following.
  3. Investing

    Clean Or Green Technology Investing

    Innovations in energy and consumption grow as companies adopt them to reduce costs.
  4. Personal Finance

    Go Green With Socially Responsible Investing

    Find out how morals and ethics can bring you a surprising return.
  5. Options & Futures

    Top 10 Green Industries

    Put a little green in your wallet by investing in these growing areas.
  6. Investing

    Can Europe’s QE Be A Stimulus For U.S. Investors?

    Finding value in today’s markets has been difficult, so many investors are turning to opportunities outside of the U.S. But where should they look?
  7. Savings

    How Microeconomics Affects Everyday Life

    Microeconomics is the study of how individuals and businesses make decisions to maximize satisfaction. Microeconomic principles can describe many everyday experiences. We use renting a New York ...
  8. Taxes

    Switzerland's Declining Tax Haven Appeal

    Switzerland's tax haven allure is being threatened by efforts by the US and other governments to make Swiss banks give up their much-vaunted secrecy.
  9. Taxes

    Are You Missing Out On These Tax Exemptions?

    To lower your tax bill, make sure that you're taking all the exemptions that apply to you.
  10. Economics

    Mitigation Trade: Making Up For Environmental Harm

    Mitigation banking is a system by means of which the liability of ecological damage is transferred from the permittee to the mitigation banker through a system of credits and debits under regulatory ...

You May Also Like

Hot Definitions
  1. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  2. Asset Class

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same ...
  3. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  4. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  5. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  6. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
Trading Center