DEFINITION of 'Environmental Tariff'

An environmental tariff is 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.

It is also known as an "eco-tariff."

BREAKING DOWN '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. ISO 14000

    A set of rules and norms for environmental management of industrial ...
  2. Multiple Column Tariff

    A tariff system where the tariff rate or import tax assessed ...
  3. Environmental Protection Agency ...

    The Environmental Protection Agency is an agency of the United ...
  4. Environmental Impact Statement

    A report addressing the potential effects on the environment ...
  5. Tariff War

    An economic battle between two countries in which Country A raises ...
  6. Tariff

    A tariff is a tax imposed on imported goods and services.
Related Articles
  1. Insights

    What Does It Mean To Be Green?

    Green investing is the new buzz word for companies and investors. Find out what it means.
  2. Insights

    For Companies, Green Is The New Black

    Sustainability and reducing environmental impact are hot corporate objectives. Find out why.
  3. Managing Wealth

    Top 6 High-Paying Environmental Jobs

    Working to save the earth doesn't have to mean being broke.
  4. Small Business

    Make Sure Your Business Complies with These 3 Environmental Laws

    Discover why 1970 is considered the year of the environment, and learn about several major environmental laws with which businesses must comply.
  5. Investing

    Emerging Markets' Environmental Commitment

    Most people think of the industrial and developed world as leaders when it comes to green technologies and environmental stewardship. After moving past their high-growth stages, many developed ...
  6. Personal Finance

    9 Green Careers With High Pay

    Being environmentally conscious doesn't mean you have to give up the comforts of life. Find out which jobs provide for both.
  7. Investing

    E*TRADE: With Tariffs Official, Best to Take a Wait-and-See Approach

    With tariff proposals now signed by President Donald Trump, investors are best served taking a wait-and-see approach, advised E*TRADE.
  8. Insights

    Five Companies Leading The Green Charge

    Corporations that reduce their environmental footprint anticipate large long-term gains.
  9. Managing Wealth

    Go Green With Socially Responsible Investing

    Find out how morals and ethics can bring you a surprising return.
  10. Investing

    Which Stocks Will Win or Lose From Steel, Aluminum Tariffs?

    Here is a list of stocks that will win or lose from the recently announced steel and aluminum import tariffs
RELATED FAQS
  1. What are common reasons for governments to implement tariffs?

    Gain a basic understanding of a government-sanctioned import tariff, what it is meant to accomplish and common reasons for ... Read Answer >>
  2. Which countries have the highest tariffs?

    Find out which countries have the most restrictive import tariffs on international products, based on data collected by the ... Read Answer >>
  3. How do tariffs protect domestic industries?

    Understand how tariffs are used by domestic government to protect its domestic industries, how they are levied, and whether ... Read Answer >>
  4. What are some of the drawbacks of industrialization?

    Learn about the major drawbacks of industrialization, such as environmental damage, income inequality, overcrowding of cities, ... Read Answer >>
  5. How does Federal Trade Commission use the Herfindahl-Hirschman Index to evaluate ...

    Understand specific examples of domestic products that rely on protective tariffs to survive. Learn about the varying tariff ... Read Answer >>
  6. What are green investments?

    Green investments are traditional investment vehicles (such as stocks, exchange-traded funds and mutual funds) in which the ... Read Answer >>
Hot Definitions
  1. Financial Industry Regulatory Authority - FINRA

    A regulatory body created after the merger of the National Association of Securities Dealers and the New York Stock Exchange's ...
  2. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs are often issued by companies seeking the capital to expand ...
  3. Cost of Goods Sold - COGS

    Cost of goods sold (COGS) is the direct costs attributable to the production of the goods sold in a company.
  4. Profit and Loss Statement (P&L)

    A financial statement that summarizes the revenues, costs and expenses incurred during a specified period of time, usually ...
  5. Monte Carlo Simulation

    Monte Carlo simulations are used to model the probability of different outcomes in a process that cannot easily be predicted ...
  6. Price Elasticity of Demand

    Price elasticity of demand is a measure of the change in the quantity demanded or purchased of a product in relation to its ...
Trading Center