Taxes on energy or energy-related CO2 emissions are now found in Denmark, Estonia, Finland, the Netherlands, Norway and the United Kingdom. In target-setting programmes that involve the use of energy taxes, such as in the Netherlands and the United Kingdom, rewards for meeting agreed-upon 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 5.2). 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 over-use.