This paper presents the first empirical analysis of the macroeconomic relationship between environmentally related taxes and inequality in income sources. The analysis also investigates whether this relationship differs between countries which have implemented environmental tax reforms (ETRs) and ones which have not.
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Despite a relatively good performance on several points compared to other countries, there is still scope for improving the effectiveness of Israel’s taxation policy from an environmental perspective.
Outdoor air pollution is a major determinant of health worldwide. The objective of this paper is to inform the development of improved estimates of the social costs of human morbidity impacts resulting from outdoor air pollution in two components; namely to develop a core set of pollutant-health end-points to be covered when estimating the costs of morbidity, and to review current estimates of the cost of morbidity from air pollution.
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This report outlines principles for successful carbon pricing, based on economic principles and experience of what is already working around the world. It is intended to provide a foundation for designing efficient, and cost-effective carbon pricing instruments—primarily explicit carbon taxes and emissions trading systems—at the national and sub-national level.
Cost-benefit analyses and other quantitative appraisals are used in many countries to support decision-making in public policy, including investment projects in sectors such as transport and energy. This paper discusses the range of approaches which can be employed to value changes in carbon emissions in policy appraisalsand presents some case studies and a survey of current practice in OECD countries.
The International Tax Dialogue (ITD) is organising its 6th global conference at the OECD. This year’s conference will focus on Tax and the Environment, an issue of growing importance and of direct relevance in the lead up to the COP21 meeting taking place later in the year. The ITD is a joint initiative of the EC, IDB, IMF, OECD, World Bank and CIAT.
Energy is a critical input into the production and consumption patterns that support economic and social wellbeing. However, many forms of energy use contribute to the environmental and climate challenges societies face today. Taxation is a key tool by which governments can influence energy use to contain its environmental impacts. This report provides a systematic analysis of the structure and level of energy taxes in OECD and selected other countries; together, they cover 80% of global energy use.
This report builds on the 2013 edition of Taxing Energy Use, expanding the geographic coverage of the 2013 data set to include Argentina, Brazil, China, India, Indonesia, Russia and South Africa. The report describes energy use, taxation and pricing in these countries and presents detailed graphical profiles of the structure of energy use and taxation for each.
The analysis reveals large differences in the taxation of energy across countries, although common patterns emerge. Transport taxes are considerably higher than in other sectors, where fuels that cause considerable harm for the environment and human health are often taxed at very low – or zero – rates. With few exceptions, countries' energy taxes do not harness the full power of taxes to reduce pollution and combat climate change.
Proposals to increase environmentally related taxes are often challenged on competitiveness grounds. The concern is that value creation in certain sectors might decline domestically if a country introduces environmentally related taxes unilaterally. This paper provides evidence on the short-term competitiveness impacts of the German electricity tax introduced unilaterally in 1999.
Concerns around potential losses of competitiveness as a result of unilateral action on carbon pricing are often central for policy makers contemplating the introduction of such instruments. This paper is a review of literature on ex post empirical evaluations of the impacts of carbon prices on indicators of competitiveness as employed in the literature, including employment, output or exports, at different levels of aggregation.
This paper reviews the use of tax preferences to achieve environmental policy objectives. Tax preferences involve using the tax system to adjust relative prices with a view to influencing producer or consumer behaviour in favour of goods or services that are considered to be environmentally beneficial.