Association for Public Policy Analysis & Management

Over the last decades, there has been a clear and growing trend in the use of fiscal policy through measures that regulate and mitigate the costs that economic activity causes to the environment. At the international level, the constant effort of the different nations to stop environmental deterioration are visible, as well as promoting an efficient use of natural resources; however, the implementation of plans and actions has not been uniform or completely effective, especially in Latin America. Mexico stands out for being a country that has made its goals explicit in environmental terms, despite this, the design and use of fiscal instruments to mitigate climate change has not been consolidated. In this document an outline is made to know the evolution of green taxes, incentives and economic subsidies in international experience, to then analyze what happened in the Mexican case and rescue some areas of opportunity in the medium and long term.