furthermore a portion of environmental tax revenues can be used to cover monitoring collection and enforcement costs and another portion used to drive green transition gtz welfare systems are poorly developed and are often implemented through wideranging energy or food subsidies rather than targeted measures this means that energy price increases due to subsidy reform can have a very significant negative social impact and that such price increases may hit the poorest hard thus great care must be taken to protect vulnerable people and ensure that environmental taxes complement social development and reduced poverty rates