Environmental tax on products and services based on their carbon footprint: A case study of the pulp and paper sector

► Carbon footprints of products and services are modeled using EIO and LCA. ► Environmental taxes are introduced based on the estimated emission intensities. ► The effect of excluding non-GHG and its policy implications is discussed. ► Emission intensity and environmental tax are higher in LCA than EIO for the analyzed case study of pulp and paper production. ► EIO is more relevant than LCA for economy wide environmental tax application.