Vol.9, No.1, February 2020.                                                                                                                                                                           ISSN: 2217-8309

                                                                                                                                                                                                                        eISSN: 2217-8333


TEM Journal



Association for Information Communication Technology Education and Science

Microeconomic Implications of Environmental Tax


Mehmed Meta, Elma Elfić-Zukorlić, Suad Bećirović, Azra Ćatović


© 2020 Elma Elfić‐Zukorlić, published by UIKTEN. This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License. (CC BY-NC-ND 4.0)


Citation Information: TEM Journal. Volume 9, Issue 1, Pages 261‐268, ISSN 2217-8309, DOI: 10.18421/TEM91-36, February 2020.


Received: 03 January 2020.

Revised:   07 February 2020.
Accepted:  12 February 2020.
Published: 28 February 2020.




The devastation of the environment occurs mainly as a result of intensive economic development. The study of its consequences is a subject of interest of experts from various professional orientations. Economic theorists, ecologists and all those involved in the creation of solutions in the field of environmental policy, product designers and new technological procedures constantly point to the need for alignment of economic development goals and the environmental consequences that economic progress causes. Excluding natural disasters, external diseconomies in production are the most powerful cause of environmental degradation, regardless of whether they occur in the form of hydro, aero or lithium pollution. The aim of this paper is to show how the introduction of pollution taxes affects the behavior of market players, the amount of pollution and the magnitude of social well-being. In most cases, the market mechanism cannot adequately address the problem of negative externalities in production. But, on the other hand, this state, because of limited information on the consequences of environmental damage or for other reasons, through its intervention in the market, can produce an outcome worse than that created by the uncontrolled market.


Keywords –negative externalities, environmental damage, environmental tax, social well-being, pollution, market inefficiency.



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