Environmental taxation is an academic concept and policy instrument within environmental economics and public finance. It investigates the design, implementation, and effects of taxes, fees, or charges applied to activities, products, or services that generate negative environmental externalities, such as pollution or resource depletion. Characterized by its use of price signals to internalize external environmental costs, its significance lies in its potential to incentivize environmentally responsible behavior, promote resource efficiency, and generate revenue to support environmental protection or broader fiscal objectives, contributing to sustainable development strategies.