Despite the stark findings of the Stern Report, published this week, the Government now receives a smaller share of both national income and total tax receipts from environmental taxes than when it was elected in 1997, research published today by the IFS shows. Meanwhile total carbon dioxide emissions have risen.

The report, The UK Tax System and the Environment, funded by the Esmée Fairbairn Foundation, examines in depth the current system of green taxes in place in the UK, their design and effectiveness, and looks at the recent history of green tax revenues and greenhouse gas emissions.