implementing an optimal tax Pigouvian is not feasible, but it is important to
recognize that it is Pigou who bequeaths the theoretical basis for
environmental taxation as well as the polluter pays principle. Given the
progress that other countries have made regarding environmental taxation such
as the EU, it is recognized that the allocation of a carbon price is one of the
best options for mitigating climate change. In Mexico, despite several
attempts, it has not been possible to implement an Environmental Tax Reform,
and it is essential to promote actions to reduce emissions and externalities,
contribute to sustainable development and reduce the impact on the country’s economy
due to environmental costs.

The principal
taxes related to the environment in Mexico are the Special Tax on Production
and Services (STPS), Car Sales Tax (CST) and the Tax on fossil fuels, the
question is to what extent the implementation of these green taxes in Mexico
can help in a certain way to reduce negative environmental externalities. The
taxes evaluated showed environmental benefits and in most cases, they seem
effective in relation to costs, within the limitations of the evaluation
carried out. In general, taxes for incentive purposes are effective from the
environmental point of view when the tax is properly applied to stimulate
pollution control measures.

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