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Environmental economists have in general paid little or no attention to the political context within which green taxation would be introduced. In order to understand the real life politics of green taxation and to base future policy recommendations on this analysis, it is necessary to establish which political constraints determine the actual design of green taxes. Daugbjerg and Svendsen answer this question by identifying three main political constraints: the micro level approach of rent seeking the macro level approach of party politics and the meso level approach of policy networks. Based on these findings the authors develop policy recommendations concerning the future design of green taxation and international permit trading.