Environmental taxes are generally accepted to be effective and efficient means of addressing many environmental problems. However, their implementation is currently being impeded by perceptions that they are likely to have a disproportionate negative impact on the poor. This report presents an analysis of the consumption of and expenditure on domestic energy, water, road fuels and the disposal of household waste, especially in respect of low-income groups. It identifies potential regressive effects that might be introduced by taxing these resources (or by charging for their consumption according to use) and offers practical suggestions for removing such effects.