2013

The Swedish tax on nitrogen oxide emissions: Lessons in environmental policy reform - Environment Policy Paper No. 2

Sweden was facing a serious soil acidification and water eutrophication problem caused partly by emissions of nitrogen oxides (NOx) from combustion processes in transport, industry and power. In 1992, Sweden introduced a high tax on NOx emissions from large combustion sources (e.g. power plants, industrial plants, waste incinerators). The tax was accompanied by a refund according to the amount of energy generated.

The political economy of British Columbia's carbon tax - Environment Working Paper No. 63

In 2008, the Canadian province of British Columbia launched a tax on all combustion sources of all fossil fuels, with a rate of CAD 10 per tonne of CO2, and with a schedule for annual increases of CAD 5 per tonne of CO₂ until the tax reached CAD 30 per tonne of CO₂ in 2012. This paper reviews the political economy of the tax in three distinct periods – its origins, its survival in the face of political backlash, and its longer-term prospects.

The political economy of fuel subsidies in Colombia - Environment Working Paper No. 61

Colombia has made progress towards eliminating fuel and diesel subsidies and reducing discretionary spaces allowing for artificially low fuel prices, but challenges remain. Colombia has provided explicit and implicit subsidies to gasoline and diesel since 1983, costing the government up to 1.6% of GDP. This paper discusses the political economy of fuel subsidies in the country to understand why reform has been so slow.

Ireland's carbon tax and the fiscal crisis: Issues in fiscal adjustment, environmental effectiveness, competitiveness, leakage and equity implications - Environment Working Paper No. 59

This paper describes the features of the carbon tax in Ireland. It recounts the story of its interplay between fiscal adjustment and helping meet the obligations to raise taxes, and implications for competitiveness and carbon leakage, environmental effectiveness and equity issues. It also draws some conclusions regarding why it happened, and provides some tentative insights for other countries in a similar situation.

Lessons from 15 years of experience with the Dutch tax allowance for energy investments for firms - Environment Working Paper No. 55

Since 1997, the Netherlands has had a tax allowance scheme that was introduced to promote investments in energy-saving technologies and sustainable energy production. This so-called Energy Investment Tax Allowance (EIA in Dutch) reduces up-front investment costs for firms investing in the newest energy-saving and sustainable energy technologies. The basic design of the EIA has remained the same over the past 15 years.

2012

Lessons in environmental policy reform-The Swedish tax on NOx emissions

This report is a first in a planned series of case studies entitled "Lessons in Environmental Policy Reform", targeting non-expert policy makers. The paper discusses the tax on NOx emissions that is employed in Sweden. Also available in French.

The political economy of the French carbon tax project

This paper discusses the political economy of the carbon tax project elaborated in 2009 in France, and it contributes to two separate projects at the OECD: a project on lessons on environmental policy reform, under the auspices of the Working Party on Integrating Environment and Economic Policies and a project on the political economy of environmental taxes, under the auspices of the Joint Meetings of Tax and Environment Experts.

Green transformation of small businesses: Achieving and going beyond environmental requirements - Environment Working Paper No. 47

This report aims to help environmental and other competent authorities in OECD countries to promote green business practices among small and medium-sized enterprises (SMEs). It analyses different ways to establish environmental regulatory requirements for facilities with low environmental risk (most of which are SMEs).

Environmental quality and life satisfaction: Evidence based on micro-data - Environment Working Paper No. 44

Environmental conditions are likely to have an effect on people’s sense of life satisfaction, both directly and indirectly. In this paper, the effects of individual and contextual factors on satisfaction with environmental quality and life satisfaction are assessed.

2011

Policy interventions to address health impacts associated with air pollution, unsafe water supply and sanitation, and hazardous chemicals - Environment Working Paper No. 35

This working paper reviews the recent empirical literature related to quantification and valuation of the human health impacts of air pollution, hazardous chemicals, unsafe water and sanitation, and their use in cost-benefit analysis, as an input to environmental policy decision-making.

Environmental policy stringency and foreign direct investment - Environment Working Paper No. 33

This paper examines empirically whether countries with relatively more lax environmental regimes have a comparative advantage in their competition for foreign direct investment.

Valuing mortality risk reductions in regulatory analysis of environmental health and transport policies

This paper draws out policy-implication from a major meta-analysis of value-of-statistical-life estimates that OECD has been conducting over several years.

Interactions between emission trading systems and other overlapping policy instruments

This paper discusses interactions that can occur when a cap-and-trade based emission trading system is combined with overlapping policy instruments, addressing emissions stemming from the same sources.

2010

The value of statistical life: A meta-analysis

This paper presents a number of meta-analyses of the value of a statistical life in stated preferences surveys, and is an input to a technical report and a user's guide for policy makers on the use of VSL values in policy assessments that is being prepared.

Meta-analysis of stated preference VSL studies: Further model sensitivity and benefit transfer issues

This paper gives a technical description of meta-analyses that have been made of estimates of the value of a statistical life in stated preferences surveys, and is an input to a user's guide for policy makers on the use of VSL values in policy assessments that is being prepared.

Outcome performance measures of environmental compliance assurance: Current practices, constraints and ways forward - Environment Working Paper No. 18

This working paper analyses the current practices of ten OECD countries in the use of quantitative indicators characterising outcomes of activities to ensure compliance with environmental pollution prevention and control regulations.

The impacts of the SOx charge and related policy instruments on technological innovation in Japan

This study attempts to clarify what sort of impact was exerted by policy instruments on the development and spread of SOx reduction technology from the 1960s up to the present. Related publication: Taxation, innovation and the environment

Effects of the VOC incentive tax on innovation in Switzerland - Case studies in the printing, paintmaking and metal cutting industries

This study is part of the OECD's “Taxation, Innovation and the Environment” programme and discusses the innovation impacts of the VOC tax in Switzerland. Related publication: Taxation, innovation and the environment

Innovation effects of the Swedish NOx charge

This report links the introduction of the Swedish NOx charge to technology adoption and development of mitigation technology. Related publication: Taxation, innovation and the environment

A review of recent policy-relevant findings from the environmental health literature

This review of recent policy-relevant findings from the environmental health literature was prepared by Alistair Hunt and Julia Ferguson, University of Bath, UK.

The influence of regulation and economic policy in the water sector on the level of technology innovation in the sector and its contribution to the environment: The case of the State of Israel

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. Related publication: Taxation, innovation and the environment

Environmental and eco-Innovation: Concepts, evidence and policies

This document is intended to be what might be called ‘a think-piece with empirical and case study evidence’ on environmental and eco-innovation for the OECD project on "Taxation, Innovation and the Environment". Related publication: Taxation, innovation and the environment

Fuel taxes, motor vehicle emission standards and patents related to the fuel-efficiency and emissions of motor vehicles.

This paper studies the impacts of motor vehicle fuel taxes and mandatory fuel efficiency standards on relevant car-related innovation activity in selected car-producing countries. Related publication: Taxation, innovation and the environment

This working paper develops a conceptual framework to shed some light on this difficult debate. Competitiveness impacts of environmental policies may derive from the policy itself, or from the improvements of the environmental performance that derives from the policy.

The scope for CO2-based differentiation in motor vehicle taxes

This paper addresses the scope for CO2-based differentiation in motor vehicle taxes, both under conditions of equilibrium and in the context of the current global recession.

Econometric analysis of the impacts of the UK Climate Change Levy and Climate Change Agreements on firms' fuel use and innovation activity

This contributes to the OECD project on "Taxation, Innovation and the Environment". It presents an econometric study of impacts of the Climate Change Levy in the United Kingdom on fuel use and innovation. Related publication: Taxation, Innovation and the Environment

Survey of firms' responses to public incentives for energy innovation, including the UK Climate Change Levy and Climate Change Agreements

This paper contributes to the project on "Taxation, Innovation and the Environment". It presents a survey of firms’ responses to public incentives for energy innovation.

Incentives for CO2 emission reductions in current motor vehicle taxes

This paper compares CO2-related tax rate differentiation in motor vehicle taxes in OECD member countries, drawing on information available in the OECD/EEA database on instruments used for environmental policy.

Assessing environmental management capacity: Towards a common reference framework - Environment Working Paper No. 8

This working paper provides a synthesis of major elements and approaches of institutional assessment that may be applied to environmental management.

Taxation, innovation and the environment - Spanish case study

This paper discusses the environmental impacts of tax incentives for innovation, and the innovation impacts of tax incentives for environmental expenditures, in the Spanish corporate income tax system. Related publication: Taxation, innovation and the environment

Greening development planning: A Review of country case studies for making the economic case for improved management of environment and natural resources - Environment Working Paper No. 5

This working paper reviews different approaches to making the economic case for improved management of natural capital in national planning. In many low-income countries natural resources sectors (agriculture, mining, forestry, fishery) are identified as the engines of economic growth.

In this working paper, the health costs of inaction with respect to air pollution are reviewed, with a particular focus on costs associated with particulate matter and ozone.

Environmentally related taxes and tradable permit systems in practice

This document discusses the economic efficiency and practical use of environmentally related taxes, with some differentiation in tax rates, versus tradable permit systems, with some element of grandfathering of permits.

An OECD framework for effective and efficient environmental policies: Full report

The objective of the Framework is to encourage policy-makers to ask appropriate questions about their environment-related policies and institutions (including the integration of environmental concerns in other policy fields), as a way of moving toward more effective and efficient (i.e. integrated) outcomes over time.

Valuing lives saved from environmental, transport and health policies: A meta-analysis of stated preference studies

This document was prepared by Henrik Lindhjem (EconPöyry), Ståle Navrud (Norwegian University of Life Sciences) and Nils Axel Braathen of the OECD Secretariat. It presents findings of a first phase of a meta-analysis of value of statistical life estimates in environment, health and traffic risk context.

This document presents case studies of instrument mixes used to address emissions to air of mercury in Norway, Sweden and the United States. Related publication: Instrument Mixes for Environmental Policy

Improving co-ordination between environmental and health policies: Final report

The report provides evidence-based recommendations to improve policy co-ordination between environment and health. It incluses case studies on Canada, France and the United Kingdom to better understand the existing level of co-ordination between environmental and health policies.

Instrument mixes addressing non-point sources of water pollution

This document presents case studies of instruments used to address non-point sources of water pollution in Denmark, the Netherlands, the United Kingdom, and in the Chesapeake Bay area of the United States. Related publication: Instrument Mixes for Environmental Policy

Making reform happen in environmental policy

This paper was prepared by Prof. Paul Ekins, King’s College London, and Dr. Roger Salmons, Visiting Research Fellow, Policy Studies Institute, London, as a contribution to an OECD-wide project on Making Reform Happen, which was being built around a series of case studies in different policy areas.

Impacts of environmental policy instruments on technological change

This report surveys the empirical (economic) literature, asking whether there indeed is any evidence of different effects on the rate and direction of technological change associated with different environmental policy instruments. Related publication: Taxation, innovation and the environment

The valuation of environmental health risks to children: methodological and policy issues

The report proposes an in-depth analysis of the main methodological difficulties associated with estimating the social value of a reduction in risk to children. It also underlines key policy implications and inputs for further research.

EPR policies and product design: Economic theory and selected case studies

This document discusses the Design for Environment impacts of Extended Producer Responsibility policies.

This report was prepared by the Norwegian consultancy firm ECON Analyse as part of a broader work on "the political economy of environmentally related taxes". Related publication: The Political Economy of Environmentally Related Taxes

The competitiveness impact of CO2 emissions reduction in the cement sector

This report was prepared by D. Demailly & P. Quirion of the research institute CIRED, France, and has benefited from a deep collaboration with the Institute for Prospective Technological Studies. Related publication: The Political Economy of Environmentally Related Taxes

Children's environmental health indicators: A survey

This report proposes an overview of the current programmes designed to elaborate children's environmental health indicators. It also examines their consistency with OECD guidelines on the development and measurement of indicators, in order to determine their usefulness to OECD member countries.

Children's Health Indicators

In the context of the work undertaken on the economic valuation of children's environmental health, this report considers current programmes in an overview designed to elaborate children's environmental health indicators. Related publication: Valuation of Environment-related Health Risks for Children

Analytical framework for evaluating the costs and benefits of extended producer responsibility programmes

Extended Producer Responsibility is a policy approach where the responsibility of producers for their products is extended to include the social costs of waste management. This document, prepared by Prof. Stephen Smith, proposes a framework for analysing the costs and benefits of such programmes.

The United Kingdom Climate Change Levy: A study in political economy

This document, prepared by Prof. David Pearce, assesses the political economy of the UK Climate Change Levy. The levy has contributed to the UK climate change targets. It may well have fared better than some regulations, but whether it has done better than a pure carbon tax is debateable. Related publication: The Political Economy of Environmentally Related Taxes (publication)

Die Gunst der Stunde: Die Überwindung der Hindernisse bei der Einführung der Leistungsabhängigen Schwerverkehrsabgabe in der Schweiz

Dieser Bericht ueber die Ueberwindung von politischen Hindernissen bei der Einführung der Leistungsabhängigen Schwerverkehrsabgabe in der Schweiz wurde erstellt von Ueli Balmer vom schweizer Bundesamt fuer Raumenentwicklung. Related publication: The Political Economy of Environmentally Related Taxes

The window of opportunity: How the obstacles to the introduction of the Swiss heavy goods vehicle fee have been overcome

This document, prepared by Ueli Balmer, assesses the political economy of the implementation of the distance-related fee for heavy goods vehicles in Switzerland. Due to the new fee, and a higher weight limit, heavy goods transport on the road has become much more efficient. Related publication: The Political Economy of Environmentally Related Taxes

Manure policy and MINAS: Regulating nitrogen and phosphorus surpluses in agriculture of The Netherlands

This document, prepared by Prof. Oene Oenema and Paul B.M. Berentsen, assesses the political economy of the implementation of the ‘minerals accounting system’ MINAS in the Netherlands. While the system contributed to some environmental improvements, the costs of its implementation were rather high. Related publication: The Political Economy of Environmentally Related Taxes

Drawing on previous work (OECD, 1997), this synthesis report expands the analysis with a particular emphasis on the economy-wide employment impacts of environmental policies in general, and of climate change policies in particular. The main objectives are to update information on employment in environmentally-related sectors in OECD Member countries and examine the contribution of environment-related local.

Environmental pollution and product charges in Armenia: Assessment of reform progress and direction for further improvement, 2004

Environmental Pollution and Product Charges in Armenia: Assessment of Reform Progress and Direction for Further Improvement.

Proceedings of OECD Seminar on extended producer responsibility: EPR programme implementation and assessment - Part 1: Taking stock of operating EPR programmes

Seminar proceedings (Part 1), from the OECD Seminar on "Extended Producer Responsibility Programme Implementation and Assessment".

Proceedings of OECD Seminar on Extended Producer Responsibility: EPR Programme Implementation and Assessment - Part 2: Assessing EPR Policies and Programmes

Seminar proceedings (Part  2), from the OECD Seminar on "Extended Producer Responsibility Programme Implementation and Assessment".

Tradable permits are rarely introduced alone, but are instead usually implemented with other policies such as regulations and taxes. This report examines the interactions between tradable permits and other policies, and sets out conditions under which it is preferable to use them in combination.

Environmental taxes and competitiveness: an overview of issues, policy options and research needs

This paper gives an overview of issues and policy options concerning competitiveness and environmentally related taxes, and offers some suggestions on further research needs.

Voluntary approaches: Two Canadian cases

The paper discusses the Canadian “Accelerated Reduction/Elimination of Toxics” (ARET) programme and the environmental management agreement that the federal department of the environment (Environment Canada) and the Ontario provincial Ministry of the Environment negotiated with the steel company Dofasco Inc.

Voluntary approaches: Two United States cases

The paper discusses the experience of Intel Corporation and Merck Pharmaceuticals in US Environmental Protection Agency’s Project XL programme.

Voluntary approaches: Two Japanese cases

The paper discusses the Pollution Control Agreements in Yokohama City and Kitakyushu City.

Voluntary approaches: Two Danish cases

The paper discusses the Danish agreement on industrial energy efficiency, with examples from agreements concluded with firms within the paper sector and with the milk-condensing sector.

Environmental policy in the steel sector: Using economic instruments

This study uses a partial equilibrium model of the steel sector to explore short to medium term impacts on the competitiveness of the steel sector of a potential broader use of economic instruments to limit CO2 emissions. Related publication: The political economy of environmentally related taxes

Issues paper for the Conference on environmental fiscal reform, 27 June 2002 - This paper, by Professor Flip de Kam of the University of Gronigen, Netherlands, presents and discusses the issues that were in focus at the conference on Environmental Fiscal Reform.

Implementing environmental fiscal reform: Income distribution and sectoral competitiveness issues -- Conference Proceedings

Berlin Conference, Summary and Main Conclusions

Berlin Conference, presentation by Jürgen Tritten, Germany (English version)

Conference on Environmental Fiscal Reform: Comments on Issues Paper by Klaus Bräunig

Conference on Environmental Fiscal Reform : Comments on Issues Paper by Xavier Delache

Conference on Environmental Fiscal Reform: Comments on Issues Paper by Sue Scott

Conference on Environmental Fiscal Reform: Comments on the Issues Paper by John Hontelez

Ökologische Finanzreform. Eine gemeinsam von der OECD und dem Bundesministerium für Umwelt, Naturschutz und Reaktorsicherheit veranstaltete Konferenz

Economic instruments - including environmentally related taxes - have proven effective to help OECD countries meet environmental challenges. These instruments make firms and households consider the costs on the environment when they make producti.

Conference on Environmental Fiscal Reform: Comments on Issues Paper by Alberto Cornejo Pérez, Spain

Conference on Environmental Fiscal Reform: Comments on the Issues Paper by Andrew Field, UK

Conference on Environmental Fiscal Reform: Comments on the Issues Paper by Hans Larsen, Denmark

A new strategy for the environment (in Japanese)

Pressures on the environment have been high in the recent past both in OECD regions and globally, but at the same time, there have been a number of environmental improvements. Economic, social and technological developments over the next few decades. Related document: Policy brief: A new strategy for the environment 

Recommendation of the Council on improving the environmental performance of public procurement [C(2002)3]

Recommends that Member countries take greater account of environmental considerations in public procurement of products and services in order to improve the environmental performance of public procurement. German version: Recommendation of the Council on improving the environmental performance of public procurement [C(2002)3]

It is now widely recognised that a greater use of market based instruments is a key element of effective and economically efficient environmental policies, and an important framework condition for sustainable development. Hence, over the last decade. Related publication: Environmentally related taxes in OECD countries: Issues and strategies

Sintesi: Una nuova strategia per l’ambiente

Pressures on the environment have been high in the recent past both in OECD regions and globally, but at the same time, there have been a number of environmental improvements. Economic, social and technological developments over the next few decades. Related document: Policy brief: A new strategy for the environment 

A new strategy for the environment

Pressures on the environment have been high in the recent past both in OECD regions and globally, but at the same time, there have been a number of environmental improvements. Economic, social and technological developments over the next few decades.

Related documents:

Policy brief: A new strategy for the environment

A new strategy for the environment (Japanese version)

Sintesi: Una nuova strategia per l’ambiente (Italian version) 

Strategic guidelines for the design and implementation of Domestic Transferable Permits

These Guidelines indicate the potential for using transferable permit schemes at the local or national level to protect the environment or manage natural resources, and provide strategic advice for implementing such schemes. Related document: Executive summary

The Working Party on Pollution Prevention and Control OECD Joint Workshop on Extended Producer Responsibility and Waste Minimisation Policy in Support of Environmental Sustainability Paris, 4-7 May 1999.

Behavioral responses to environmentally-related taxes

The impact of a given change in taxation on the environment will to a large extent depend on the relevant price elasticities. The present report provides an overview of available estimates of own-price elasticities regarding energy and transport. Related document: Environmentally related taxes in OECD countries

Greening tax mixes in OECD countries: A preliminary assessment

The Committee on Fiscal Affairs and the Environment Policy Committee launched a series of Joint Meetings of Tax and Environment Experts in 1999. One part of the mandate of these meetings was to monitor green tax reform in OECD member countries. As a contribution to this work, it was decided to undertake a study of OECD country experience with green tax reform. The issue of the environment employment “double dividend” is of particular relevance to green tax reforms. Related documents: Environmentally related taxes in OECD countries

OECD Seminar Social and Environment Interface - Proceedings

Following an internal seminar with participation of staff from various OECD Directorates (ENV, ECO, DELSA, TDS), the Environment Directorate organised an OECD Seminar on the Social Environment Interface, on September 22-24, 1999.

This survey report gives priorities to the review of traditional pollution control agreements as they have proven record of implementation over more than thirty years. A review of the new approach based on voluntary action plans is made in a parallel report of the case study for Japan. Related document: Voluntary approaches for environmental policy: An assessment

The use of unilateral agreements in Japan: Voluntary action plans of industries against global warming

This report was prepared by Mr. Hidefumi Imura, professor at the Institute of Environmental Systems, Kyushu University (Japan), in the context of the OECD survey on the use of voluntary approaches in environmental policy. Related documents: Voluntary approaches for environmental policy: An assessment & The use of voluntary agreements in Japan: An initial survey

This report is a synthesis of the existing literature on the use of voluntary approaches in the EU. Its aim is to portray the use of voluntary approaches in the Member States and to identify both their common characteristics and those that separate them. The report relies mainly on four studies: a quantitative and qualitative inventory of voluntary agreements in the European Union (EU) by the Directorate General for Industry (DGIII). Related document: Voluntary approaches for environmental policy: An assessment 

The use of unilateral agreements in the United States: The responsible care initiative

This report was prepared by Ms. Janice Mazurek, an environmental policy consultant in Washington DC, in the context of the OECD survey on the use of voluntary approaches in environmental policy. Related documents: The use of voluntary agreements in the United States: An initial survey & Voluntary approaches for environmental policy: An assessment 

The use of voluntary agreements in the United States: An initial survey

This is the final version of the report prepared by Ms. Janice Mazurek, an environmental policy consultant in Washington DC, in the context of the OECD survey on the use of voluntary approaches in environmental policy. Related document: The use of unilateral agreements in the United States: The responsible care initiative

Final guidance document for distinguishing waste from non-waste [ENV/EPOC/WMP(98)1/REV1]

This paper was submitted to the Delegates of the WMPG at the April 1998 meeting for consideration. The paper provides guidance for distinguishing wastes from non-wastes and outlines the remaining unresolved contentious issues.

Extended producer responsibility phase 2 : Case study on the German Packaging Ordinance 

Extended and shared producer responsibility: Phase 2 

Case study on the Dutch Packaging Covenant 

Extended and Shared Producer Responsibility: Phase 2: Framework Report