January 2016

Study on Assessing the Environmental Fiscal Reform Potential for the EU28

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Posted in | by Dr Dominic Hogg, Tim Elliott, Laurence Elliott, Sarah Ettlinger, Tanzir Chowdhury, Ayesha Bapasola, Hulda Espolin Norstein

This report for the European Commission’s DG Environment examines the potential economic and environmental benefits of environmental tax reform across all 28 EU Member States.

Environmental taxes are an important source of income for countries, and provide an economic incentive to householders and businesses to reduce their impact on the environment.

The research, undertaken by a consortium led by Eunomia, which included the Institute for European Environmental Policy, Aarhus University, ENT Environment and Management, and Denkstatt, found that:

  • EU28 countries could raise an estimated €208 billion in additional revenue in 2030 by implementing the suggested tax reforms, equivalent to a 1.05% increase in GDP, with Sweden, Spain and France demonstrating the highest potential revenue generation per capital;
  • The environmental benefits associated with these changes are estimated to be €13.7 billion in 2030; and
  • Estimated additional tax revenues are 59% lower in 2020 when accounting for political feasibility, but only 9% lower in 2030. This suggests that, while in the short-term the implementation of certain taxes is viewed as challenging, over the longer-term, nearly all the suggested taxes are viewed as politically feasible.

This report is available free of charge. Press the orange button and supply a few details about yourself in order to access the download. The appendices to the report can also be downloaded.

 

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