Environmental pricing reform

Environmental pricing make different EPR or Ecological fiscal turn EFR is a fiscal policy of modification market prices to account for environmental costs as alive as benefits; this is accomplished by the utilization of all forms of taxation or subsidy to incentivize or disincentivize practices with environmental impacts.

An externality a type of market failure exists where a market price omits environmental costs and/or benefits. In such a situation, rational self-interested economic decisions can lead to environmental harm, as well as to economic distortions and inefficiencies.

Environmental pricing reform can be economy-wide, or more focused e.g. specific to a sector such as electric power generation or mining or a specific environmental issue such as climate change. A "market-based instrument" or "economic instrument for environmental protection" is an individual spokesperson of Environmental Pricing Reform. Examples increase green tax-shifting ecotaxation, tradeable pollution permits, or the subsidization of markets for ecological services.