Taxes designed to reduce damage to the environment by creating incentives to reduce emissions of products such as nitrous oxide or carbon dioxide. Emission taxes can be used as an alternative to, or a supplement for, quantitative controls on emissions. The arguments for using taxes are that they induce reductions in emissions where this can be achieved at least cost, and that they raise revenue so that other distortionary taxes can be reduced. See also carbon tax; double-dividend hypothesis; Pigouvian taxes.