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The car tax in Israel has been historically the highest compared to any other country in the world, except for Denmark. The vehicle purchase tax was adjusted in 2005, 2009 and 2013. The Israeli experience sets a precedent for a tax that takes all pollutants into account.
Israel’s growing population and rising incomes have seen consumption increase substantially, bringing with it considerable pressure on the environment. One of the main environmental pressures is from the ever-increasing transport activity, especially the use of private vehicles. Although travelling in a private vehicle brings benefits to the individual using it, this entails costs to society as a whole.
English, PDF, 357kb
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.
Today, management of water resources is one of the major challenges confronting Israel. Accelerated population growth - along with economic growth - has placed additional pressure on Israel's limited water resources but the country is at the forefront of green innovations for water management.&l
Offshore natural gas discoveries have released Israel from complete reliance on imported primary fuels and are allowing for a cleaner energy mix.
English, , 707kb
Now that Israel has entered the OECD, the government has made significant efforts to push environmental initiatives such as the promotion of eco-innovation. This report provides an overview of governmental efforts to stimulate eco-innovation in the business sector and households.
By putting a price on pollution, do environmentally related taxes spur innovation? Does the design of the tax play a critical role? What is the effect of this innovation? In analysing these questions, the report draws on case studies that cover Japan, Korea, Spain, Sweden, Switzerland, the United Kingdom, Israel and others. It also covers a wide set of environmental issues and technologies, as well as the economic and policy contexts.
The paper discusses the impacts of policies applied over the last decades in the water sector in Israel on technological innovation and on the environment.