Before considering environmental taxation in detail it is worth briefly reflecting on
some of the alternatives. Voluntary agreements are just that – voluntary - and without
legally binding obligations, there is no requirement to make significant changes.
However, it must be recognized that voluntary agreements play an invaluable role in
the policy mix, an example of which is the recently concluded pact between the
forestry industry and the conservationists in Tasmania relating to the shift from old
growth forests logging to plantation logging.