What is Eco-Fiscal Policy

This chapter explores the role of ecological taxation in sustainable development, focusing on Uruguay and Chile's strategies. It discusses “taxing tomorrow,” a concept that emphasizes using fiscal policies to preemptively address sustainability challenges by internalizing environmental costs. The analysis covers eco-fiscal policies like carbon taxes and congestion charges, demonstrating their impact on reducing environmental degradation and promoting sustainable behaviors. By comparing Uruguay and Chile, the chapter highlights how different approaches can reflect specific national contexts and contribute to achieving the United Nations' sustainable development goals (SDGs). This comparative insight underlines the importance of adaptable ecological taxes in global sustainability efforts, offering lessons on integrating these policies into broader economic and environmental strategies.