A greater focus of this article, however, is on the institutional challenges presented by, and the efficiency of, effluent taxes. Depending on the type of system imposed, taxes do not guarantee more efficient outcomes than more standard forms of regulation. And, leaving politics aside, it can be institutionally demanding to put in place a system of effluent fees guaranteed to produce markedly better outcomes than more conventional systems of regulation. But, despite these difficulties, there remains a strong set of arguments for the use of taxes to control water pollution. The article will explore both the.
