Within our economies, the cost of pollution is often neglected, as pollutants are emitted without an appropriate 
price. By removing existing price distortions that generate perverse incentives, fiscal policies can help shift behaviour towards more sustainable patterns, discouraging polluting activities or the use of polluting products in a cost-effective way. Such fiscal policies should be implemented alongside other instruments including regulatory measures, such as emission standards, and information tools, such as labels and communication campaigns. Working together this complementary mix of policies can stimulate the systemic and behavioural changes needed to prevent and reduce pollution.
Despite their potential role in addressing pollution and associated health impacts, the use of fiscal instruments in reducing pollution is currently limited, particularly in developing countries, and there is a knowledge gap on how to optimize the use of such instruments. To address this gap, in 2019 UN Environment is carrying out a series of studies evaluating the performance of fiscal instruments in managing pollution and will develop good practice guidelines on the effective use of fiscal instruments to address pollution and improve health impacts.
Chemicals pollution in the agriculture sector
From food and clothing to transport, technology, and numerous other sectors, chemicals are a part of daily life. However, the increasing production, use and disposal of toxic chemicals has significantly affected the environment and human health. According to the WHO, 4.9 million deaths (8.3 percent of total deaths) and 86 million disability-adjusted life years (DALYs) globally were attributable to the exposure to certain toxic chemicals in 2004. In the agriculture sector, the use of certain fertilizers and pesticides have significant adverse effects on the environment and human health. A tax on their use can help correct certain market failures and reduce the use of the most harmful pesticides and fertilizers. Revenues from such taxes can be used to mitigate the environmental impacts of pesticides and fertilizers, to support the adoption of more sustainable agriculture practices or to reduce other taxes on agriculture. In 2019, UN Environment will carry out a study to assess the effects of pesticide and fertilizer subsidies in the agriculture sector.
