We are pleased to present the second in our new publication series, ICTD Research in Brief - two-page summaries of our working papers edited to capture the main policy messages and aimed at policy makers, tax administrators, fellow researchers and anyone else who is big on interest and short on time. We hope you enjoy it. This paper reviews the potential of environmental taxation to address dual objectives of tackling a range of environmental pressures in developing countries, while at the same time increasing tax revenue. Other objectives including poverty reduction and economic growth are also considered.