Environmental Tax Reform: Principles from Theory and Practice to Date

Heine, Dirk; Norregaard, John; Parry, Ian

doi:10.2139/ssrn.2169725

Cited by 12 publications

(13 citation statements)

References 24 publications

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“…Hence, ETR seeks to change the tax, not to increase it (Ekins et al, 2011). Heine et al (2012) Stated that One of the influential factors for the continuation of the environmental tax reform movement is the pressure to generate new revenue to strengthen the financial position. There is considerable evidence that ETR has successfully reduced pollution emissions and overcome existing barriers.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

“…Environmental taxes should be levied directly on potential damages from carbon and pollution content such as coal, natural gas and petroleum products due to greenhouse gas emissions; However, productive use of environmental tax revenues is essential to contain their costs and address concerns about the impacts on vulnerable businesses and households. For example, using them to reduce other distortionary taxes (Heine et al ., 2012). ETR is a shift in tax groups that transfers the tax burden from general taxes (taxes on income, capital, or labor) to taxes on the use of resources or pollution (Aubert and Chiroleu-Assouline, 2019; Ekins, 1999; Ekins et al ., 2011).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

“…The results of research (Khodamipour et al ., 2022) also showed that ETR has the highest-ranking value of solutions to solve environmental tax implementation barriers. But it should be noted that ETR should be adjusted over time along with the amount of environmental damage (Heine et al ., 2012).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

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Prioritization and taxonomy of factors related to environmental tax reform (ETR) using fuzzy AHP approach

Askari Shahamabad,

Rahimi,

Shamsadini

et al. 2023

MEQ

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PurposeEnvironmental taxes have been in place for many years to reduce environmental damage and pay more attention to the environment. However, some of the adverse socio-economic impacts that may result from such taxes and the many challenges facing developing countries have necessitated policy reform. Therefore, identifying and prioritizing the factors related to environmental tax reform (ETR) is necessary to help governments and environmental protection agencies (EPAs) focus on this prioritizing to develop and improve this process. Awareness of the benefits of ETR encourages governments to use this policy to reduce adverse environmental impacts and contribute to economic growth.Design/methodology/approachThe primary purpose of this work is to prioritize and taxonomy the factors related to ETR using the Fuzzy Analytic Hierarchy Process (FAHP) approach. In the first stage, 25 factors were extracted from the available literature. These factors were divided into five categories for more accessible review. In the second stage, the FAHP as a Multiple-Criteria Decision-Making (MCDM) Technique was used to prioritize and develop the taxonomy of identified factors and the categories of these factors.FindingsThe results show that reducing carbon emissions (DF4) is the essential prioritization factor that governments and environmental organizations can achieve if the ETR is implemented. Following that, reducing greenhouse gas emissions (DF1), double benefit (EcF7) and increase sustainability reports (EnF4) can be achieved by implementing ETR.Research limitations/implicationsThis study is geographically limited to Iran. In terms of the study population, this study is limited to 25 academic, tax and public policy experts. Moreover, in this study, FAHP is the only approach used. For further research, the results of this study can be compared with that of other multi-criteria techniques like FAHP, fuzzy TOPSIS or BWM.Practical implicationsRatings of factors related to ETR can guide and help governments identify important factors that affect environmental tax reform, which can, in addition to controlling ecological pollution will, increase the economic benefits of governments.Originality/valueThis study is the first to identify factors related to environmental tax reform and to develop an MCDM technique for prioritizing these factors and finding important ones.

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Section: Theoretical Frameworkmentioning

confidence: 99%

Section: Theoretical Frameworkmentioning

confidence: 99%

See 1 more Smart Citation

Prioritization and taxonomy of factors related to environmental tax reform (ETR) using fuzzy AHP approach

Askari Shahamabad,

Rahimi,

Shamsadini

et al. 2023

MEQ

View full text Add to dashboard Cite

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“…As the tax cannot be adjusted for inflation, these rates decrease in real terms over time. In short, and as Gago et al [12] state, practically all existing energy taxes in the world are below the optimal level from an environmental point of view, with one of the factors that explain this situation being the problems in the design of these taxes [13]. In the same sense, Sanz & Rodríguez [14] point out that some environmental taxes have not been designed, considering the impact of energy consumption on the environment.…”

Section: Climate Change-related Tax Revenue By Taxable Base (% Total ...mentioning

confidence: 99%

Taxing Energy as Innovation Driver in the European Union

Lagos-Rodríguez¹

2023

Business, Management and Economics

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A significant European Union’s concern is overcoming dependence on fossil fuels and generating sustainable and environmentally friendly growth. Public decisions must be adopted to ensure this objective considering the widespread agreement about promoting energy change implies a technological transformation derived from R&D. This chapter is focused on the relationship between energy taxation and environmental R&D. The question is whether European taxation’s role is suitable for promoting energy change. The main conclusion is that beyond the fact that green taxes are a low percentage of the total collection, their configurations are more designed to internalise pollution’s cost than favour R&D. Despite energy taxation has been directed at the fundamental objective of revenue collection, it is necessary that public tax policies should be designed considering their role as a driver of environmental R&D. Taxes on traditional energy sources should adapt their structure considering the level of CO2 emissions as well as the impact of investment tax credits on the Corporate Income Tax should be assessed as drivers of environmental R&D. A limitation of this study is the lack of available data to link these incentives to the patents on green energy sources which constitutes an objective to achieve in future research.

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“…Correcting these externalities would justify taxes even in the absence of regulation or a need to generate fiscal resources because there is an inherent market failure that prevents the efficient allocation of resources at market prices (Parry et al ., 2014) . In principle, there's growing acceptance that direct taxation can achieve many of these goals (Heine, Norregaard, and Parry, 2012) .…”

Section: Box 1: Fuel Taxationmentioning

confidence: 99%

The Other Side of the Boom: Energy Prices and Subsidies in Latin America and the Caribbean during the Super-Cycle

Espinasa,

Marchán,

Yépez-García

2017

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This report quantifies the effect of energy prices and subsidies in Latin America and the Caribbean and finds that discretionary price-setting mechanisms often lead to expensive, inefficient, and regressive subsidies. The study also models the welfare impact on households across the income spectrum of raising energy prices and assesses the impact of redirecting part of the savings gained to more targeted social protection programs.

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Environmental Tax Reform: Principles from Theory and Practice to Date

Cited by 12 publications

References 24 publications

Prioritization and taxonomy of factors related to environmental tax reform (ETR) using fuzzy AHP approach

Prioritization and taxonomy of factors related to environmental tax reform (ETR) using fuzzy AHP approach

Taxing Energy as Innovation Driver in the European Union

The Other Side of the Boom: Energy Prices and Subsidies in Latin America and the Caribbean during the Super-Cycle

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