He argued that environ mental reforms are a key instrument of raising fiscal revenues and fighting poverty through generating or freeing up budgetary resources to be used for pro-poor investments, while furthering environmental goals. Options of instruments of an EFR package should encompass a broad range of taxes, pricing instruments and reforming subsidies.
In EFR concept, he allocates revenue in some ways such as: revenue allocated to priority spending areas; revenues are used for reduction in other taxes – tax shifting exercise; or revenues are earmarked for environmental/pro poor investment programs. He also finds evidences that EFR can increase the efficiency of the economy.