In selecting a tax rate, it is also important to distinguish between long-term and short-term objective and responses. In general, the long-term response to a given tax rate is likely to be larger because it will include the changes in capital stock and durable goods that can benefit the environment. This suggest that an environmental tax that sets out to encourage change in patterns of production or consumption over a number of years can be effective at a lower rate than one intended to achieve major results in the first year or two