taxes on energy or energyrelated co emissions are now found in denmark estonia finland the netherlands norway and the united kingdom in targetsetting programmes that involve the use of energy taxes such as in the netherlands and the united kingdom rewards for meeting agreedupon targets are provided in the form of a reduction of the required energy tax however tax rates on energy use for agriculture are much lower than those imposed on the whole economy figure one of the reasons for this is that fuel used in agriculture is often exempt from tax fuel tax exemptions provide no signal with respect to external costs thereby encouraging overuse