POLLUTION FEE OR TAX

Charge for the amount of waste or pollution. Examples include the BTU tax that was an early casualty in the President's budget bill. Several European nations have air and water pollution charges; Unit pricing for trash pickup, charging by the amount of trash collected (or the size of the container). The charge makes it worthwhile for a producer to cut back, right up to the point where it begins to cost more to reduce pollution than to pay the tax. A system like this also raises money for government, allowing government, if it chooses, to reduce taxes in other areas while collecting the same amount of total revenue.