Environmental taxes are fees imposed by governments on activities that harm the environment. These taxes aim to reduce pollution and encourage businesses and individuals to adopt more sustainable practices. For example, a tax on carbon emissions can motivate companies to invest in cleaner technologies. The revenue generated from environmental taxes can be used to fund renewable energy projects, conservation efforts, and public transportation improvements. By making polluting activities more expensive, these taxes help promote a healthier planet and support the transition to a greener economy, benefiting both current and future generations.