A $1.5 million study by the National Academy of Science (NAS) aims at taking inventory of the U.S. tax code and how it effects emissions of carbon dioxide and other greenhouse gas emissions. The results of the study will be out soon.

Even though the study does not aim to change tax codes or recommend new taxes, it will have an impact on financial reforms. Moreover, environment activists will be closely looking at the results of the study. The NAS study will show the impact of taxes on carbon dioxide emissions. It will study the basic building blocks of the tax system in respect to what levels of greenhouse gas is currently being produced.

Deductions, allowances for the production of various types of energy as well as home mortgage deduction and investment tax credit are also being included in the study. Also, tax provisions that affect urban development patterns, agriculture, industrial processes and forestry are also included.

Environmental experts, economists and politicos make the ad hoc committee of the study. But all are not in favor of the study. Some environmental experts are calling it a waste of money. They are of the opinion that such taxes are not only ineffective, but also harm economic growth.

The battle between taxes and the environment will begin when the results of the study will be out. Time will tell how it will affect government policies and the tax code.