INTRO: state the q; motivate him; historical factsA number of EU members have implemented Environmental Tax Reforms (ETRs), defined as a reform of the national tax system that shifts the tax burden from labor taxation to carbon-energy taxation, and the reforms were first introduced in the Scandinavian countries. since 1990, then applied in other European countries, such as Germany and Great Britain (PTAK, 2010; COMETR, 2007). This project summarizes an evaluation of the German ETR and its effect on technological innovation by trying to answer the research question: has the German ETR increased technological innovation? The question is driven by general environmental considerations, for example slowing global warming by reducing energy consumption and carbon emissions. The aim of my article is to evaluate the effect of German ERTs on the level of technological innovation in particular, and this is motivated by the following relevant facts. The German ETR was launched in April 1999 and has been adopted in Germany for over ten years; thus, we have ample data available to assess the impacts of this ETR on the motivations of the German government. This ETR was proposed because the German government wanted to increase technological innovation, create additional jobs and reduce energy consumption (Agnolucci, 2009; Beuermann and Santarius, 2006). Additionally, it is important for us to assess the impacts of REEs from different perspectives, for example the level of technological innovation, rather than assessing the impacts on the level of energy consumption and employment discussed many articles. The rest of the document is organized as follows. Section 2 presents a review of related literature......middle of article......positively; therefore, it can be concluded that ETR in Germany has had a positive impact on reducing energy consumption, and that the effect on employment is overall small and can be positive (Agnolucci, 2009)…. . However…. Additionally, Agnolucci applied an econometric approach. assess the effect of environmental tax reforms introduced in Germany and the United Kingdom, in particular their effects on energy consumption and employment levels…. In this article, the author modeled his data by sorting them according to the following different economic subsectors: textiles and leather (TXT); Pulp, paper and printing (PPP); Rubber and plastics (RP); Non-metallic minerals (NMM); Machinery (MAC); Electrical and optical equipment (ELE); Wholesale and retail trade (TRA) which covered almost the entire spectrum of manufacturing activity. Therefore, I can use these subsectors later in my solving process.