Environmentally Related Taxes in Oecd Countries: Issues and Strategies

Foreword
Table of Contents
Summary and Conclusions
	i. Making taxation and environmental policies mutually reinforcing
	ii. Implementing environmentally related taxes
		ii.1.International competitiveness
		ii.2. Income distribution
		ii.3. The use of tax revenue
		ii.4. Acceptance building
	iii. Further work
	Notes
Introduction
	Environmentally related taxes
	Outline of the report
	Notes
Part I. CONCEPTUAL BACKGROUND
	Chapter 1. A Brief Theory of Environmentally Related Taxation
		1.1. Externalities
			Figure 1. The socially efficient level of taxation
		1.2. Economic instruments
		1.3. Static efficiency
		1.4. Dynamic efficiency
			Figure 2. The dynamic efficiency of taxes
		1.5. Tax design issues
			Box 1. Taxes and tax-bases
		1.6. Options for the use of tax revenues
		1.7. The main obstacles to implementing environmentally related taxation
			Box 2. The concept of competitiveness
		1.8. Environmentally related taxation in policy mixes
		Notes
	Chapter 2. Options for Green Tax Reform
		2.1. The background to green tax reform
		2.2. Targets of green tax reform
			Table 1. Support levels in OECD countries
			Box 3. Effects of energy support removal
		2.3. Double dividend possibilities
			Box 4. Efficiency costs tied to taxation
			Box 5. Main conclusions from existing studies on the double dividend
			Table 2. Double dividend packages
		2.4. Policy packages
			Box 6. The pitfalls of voluntary approaches
			Box 7. Ozone depleting chemical taxation and quota trading in the US
			Box 8. Carbon taxes and trading proposals in Norway
		2.5. Evaluating environmentally related taxation
		Notes
Part II. IMPLEMENTING GREEN TAX REFORM
	Chapter 3. An Overview of Green Tax Reform and Environmentally Related Taxes in OECD Countries
		Box 9. German ecological tax reform
		3.1. Revenues from environmentally related taxes
			Figure 3. Revenues from environmentally related taxes in per cent of GDP
			Figure 4. Revenues from environmentally taxes in per cent of total tax revenues
			Figure 5. Revenues from environmentally related taxes per capita
			Figure 6. Revenues raised on environmentally related tax-bases
		3.2. Energy and fuel taxes
			Figure 7. Tax rates on motor vehicle fuels and light fuel oil, as of 1.1.2000
			Figure 8. Tax rates on electricity consumption, as of 1.1.2000
			Figure 9. Tax rates on aviation fuels used in domestic flights, as of 1.1.2000
			Box 10. Competitiveness based and income distribution based exemptions and rebates in energy taxes
			Box 11. Environmentally motivated exemptions and rebates in energy and fuel taxes
		3.3. Other environmentally related taxes
			Figure 10. Tax rates on final waste treatment, as of 1.1.2000
			Box 12. Rebates and exemptions in taxes concerning final treatment of waste
			Figure 11. Taxes on beverage containers
			Figure 12. Tax rates on sulphur content in fuels, as of 1.1.2000
			Box 13. Taxes on chemicals and on resource extraction
		Notes
	Chapter 4. Addressing Competitiveness Concerns over Environmentally Related Taxation
		4.1. Introduction
		4.2. Possible economic implications – the case of a carbon tax
			Table 3.  Selected OECD countries cost increases from a tax of US$100/ton carbon
			Table 4. Changes in tax revenue by sector in Finland in 2010
		4.3. Evidence of competitiveness impacts and current mitigation practices
		4.4. The impact and costs of mitigation measures
		4.5. Possible responses to the competitiveness issue – a case for tax coordination?
		4.6. Conclusions
		Notes
	Chapter 5. The Income Distribution Issue
		5.1. Available evidence on income distribution impacts
		5.2. Policy options
		Notes
	Chapter 6. Administrative and Compliance Costs
		6.1. Factors affecting administrative costs
		6.2. Evidence on administrative costs
		6.3. Policy options
		Notes
	Chapter 7. Acceptance Building
		7.1. Green Tax Commissions
			Table 5. Green Tax Commissions and their remit
		7.2. Other measures for acceptance building
			Box 14. Acceptance building measures used for the UK tax on industry and business use of energy
		Notes
	Chapter 8. Environmental Effectiveness: Available Evidence
		8.1. Price elasticities: behavioural responses
			Box 15. The main elasticity terms
			Table 6. Selected estimates of price elasticity of gasoline
			Table 7. Selected estimates of own-price elasticity of residential electricity
			Table 8. Elasticity for modes of transport
		8.2. Empirical evidence for environmental effectiveness of taxes
			Figure 13. Petrol prices and fuel efficiency of new cars
			Table 9. The German ecological tax reform – differences in the additional tax burden between fuels
		8.3. Empirical evidence for the environmental effectiveness of tax differentials
		8.4. Improving the environmental effectiveness of taxes
		Notes
	Chapter 9. Taxing Greenhouse Gases: Issues and Options
		9.1. Taxation and the Kyoto Protocol
		9.2. The Kyoto Protocol and the flexible mechanisms
			Box 16. Kyoto Protocol flexible mechanisms
		9.3. Potential for CO2 taxation in OECD
		9.4. The importance of the non-CO2 greenhouse gases
		9.5. Taxing non-CO2 greenhouse gases
			Table 10. Greenhouse gas sources that are suitable for taxation
			Table 11. Greenhouse gas sources that are not suitable for taxation
		9.6. OECD Member country experience with taxing non-CO2 greenhouse gases
		Notes
	Chapter 10. Green Tax Reforms: An Assessment
		10.1.Environmental effectiveness
		10.2.Cost-effectiveness of environmentally related taxation
	Annex I. Basic Economic Analysis of “First-round” Effects of Introducing a Carbon Tax
		Figure A.1.1. Illustrative impact of carbon tax on monopolist
		Figure A.1.2. Illustrative impact of carbon tax on perfectly competitive firm
	Annex II. The Case of Co-ordinated Implementation of a Carbon Tax
		Figure A.2.1. Harmonised adoption of carbon tax: illustrative effects
	Annex III. ODC Taxation in the US
		Table A.3.1. Ozone-depleting chemical taxation in the US
		Table A.3.2. Tax on floor stocks of ODCs
	Annex IV. Non-CO2 Greenhouse Gas Taxation
	Bibliography