The costs of environmental damage were cut by RMB 36 billion ($5 billion) (GTZ, 2008). Similarly, in Islamic Republic of Iran 20 per cent of the savings from subsidy reform were redirected to industry to facilitate investment in energy efficiency (USD, 2013). Such strategic use of revenue can reduce the overall cost of environmental tax policies (Ekins, 2009). This is because environmental problems tend to be multidimensional - not only does it matter how much pollution is released, but also where and how (OECD, 2006).