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, economic instruments have been playing a growing role in environmental policies of OECD countries. In this context, a distinctive feature is the increasing role of environmentally related taxes. All countries have introduced environmental taxes to a varying extent, and an increasing number of countries are implementing comprehensive green-tax reforms, while others are contemplating doing so. This report analyses current use of environmentally related taxes in OECD Member countries. Focus is given to their environmental effectiveness. The report identifies obstacles to a broader use of such taxes -- in particular the fear of loss of sectoral competitiveness -- and ways to overcome such problems.
Table of contents:
Summary and Conclusions Introduction Part I. Conceptual Background Chapter 1. A Brief Theory of Environmentally Related Taxation Chapter 2. Options for Green Tax Reform Part II. Implementing Green Tax Reform Chapter 3. An Overview of GreenTax Reform and Environmentally Related Taxes in OECD Countries Chapter 4. Addressing Competitiveness Concerns Over Environmentally Related Taxation Chapter 5. The Income Distribution Issue Chapter 6. Administrative and Compliance Costs Chapter 7. Acceptance Building Chapter 8. Environmental Effectiveness: Available Evidence Chapter 9. Taxing Greenhouse Gases Chapter 10. GreenTax Reforms: An Assessment Annex I. Basic Economic Analysis of "First-Round" Effects of Introducing a Carbon Tax Annex II. The Case of Coordinated Implementation of a Carbon Tax Annex III. ODC Taxation in the US Annex IV. Non-CO2 Greenhouse Gas Taxation Bibliography