Environmental Fiscal Reform Potential in 12 EU Member States

28th February 2014

by Tim Elliott, Dr Chris Sherrington

This study, undertaken by Eunomia Research & Consulting in conjunction with Professor Mikael Skou Andersen of Aarhus University, aims to evidence the potential economic and social benefits of environmental fiscal reform, to support the European Semester process on environmental protection and resource efficiency.

It presents data on the potential of revenues from environmental taxation and other indirect benefits (such as job creation) resulting from environmental fiscal reform in 12 selected countries, using a methodology supplied by the European Environment Agency (EEA), with methodological assistance from the EEA.

The study found that in real (2013) terms, across the group of 12 countries, in 2016 fiscal reform would lead to an additional revenue of  around €35 billion, or 0.63% of their estimated combined GDP. This would rise to €101 billion in 2025, or 1.57% of the combined GDP. In addition, in 2016, around €24 billion in real 2013 terms, or 0.43% of the combined GDP, could be saved by removing some environmentally harmful subsidies.

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