Environmental economists pay 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, Carsten Daugbjerg and Gert Tinggaard Svendsen identify 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.