Lithuania leads the way in using environmental taxes to combat pollution.
Environmental taxes in Lithuania play a crucial role in reducing pollution and raising funds for environmental protection. By taxing activities that harm the environment, these taxes encourage businesses to be more eco-friendly. The study looked at data from different economic sectors and found that agriculture, manufacturing, and trade contribute the most to pollution. Lithuania is making progress in reforming its environmental tax system, but there is room for improvement in setting tax rates and incentives to reduce pollution from high GDP sectors.