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Direct tax
one that taxes the income of people and firms and that cannot be avoided
Indirect tax
Is a tax levied on goods or services.
Polluter pays principle
Any measure, such as a green tax, whereby the polluter pays explicitly for the pollution caused
Subsidy
A payment, usually from government, to encourage production or consumption of a product
Tradable permit
a permit that allows the owner to emit a certain amount of pollution and that, if unused or only partially used , can be sold to another polluter
