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This article provides an overview of specific and systemic applications of energy taxes and environmental(or green) tax reforms. To do so it combines a theoretical and empirical assessment of the literature, with anon-exhaustive description of the practice of these instruments and packages in the real world. Besidesyielding a comprehensive approxim...
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... papers are specif- ically reported in a separate section of the references of the article, with figures 4 and 5 sum- marizing the main effects of energy taxes, presenting the percentage changes in key variables from a business as usual situation. Figure 4 shows the effects of energy taxes on prices and demand of energy goods. In this sense, the price impact of energy taxes is significant (over 20%) in approximately 40% of the empirical applications, although it does not lead to similar reductions of energy demand. ...
Context 2
... papers have focused on greenhouse gas emissions (particularly carbon dioxide), given the potentially large negative effects of climate change, although car- 158 ALBERTO GAGO, XAVIER LABANDEIRA Y XIRAL LÓPEZ-OTERO bon dioxide emissions can be also used as a proxy of other fossil fuel related emissions that generate local or regional environmental problems. Figure 4 also summarizes the effects on carbon dioxide emissions (CO 2 ) in the surveyed literature, showing that in general energy taxes are effective in the reduction of carbon dioxide emissions, with 95% of the simulations reporting decreases in emissions with respect to the business as usual scenario. New or increased energy taxes may cause macroeconomic effects, as illustrated by fig- ure 5. ...
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... This includes the EU, which in recent years has adopted more ambitious climate targets 1 by proposing, inter alia, a revision of the Energy Taxation Directive (ETF) and the coverage of road transport emissions by a new emissions trading system that will become operative as of 2027. In this regard, pricing instruments -including carbon pricing and energy taxes-are considered a cost-effective approach to reducing emissions (Gago et al. 2014). Yet, despite the efforts of EU legislation to harmonize energy taxation across the Union, differences in fuel prices between neighboring countries can jeopardize potential gains from these policies by becoming a source of carbon leakage and revenue loss. ...
We exploit a fuel tax increase in Portugal to identify its effect on cross-border fuel sales and associated carbon leakage in the Spanish border regions. Using a difference-in-difference strategy, we find that while gasoline sales remained unaffected, diesel sales in Spanish border regions increased by 6–9%. Synthetic control methods confirm these estimates and attribute this differential effect by fuel type to routes frequented by heavy-duty vehicles, with large diesel tanks. We estimate a carbon leakage equivalent to 14–20% of Portugal’s annual mitigation commitment for road transport emissions. Our findings imply that heavy goods vehicles’ strategic behavior undermines the potential mitigation effects and revenue gains of transport climate policy, underscoring the need for coordinated policies in similar federal or quasi-federal contexts.
... West & Williams (2004) critically examine the cross-price elasticity interplay between leisure and environmentally harmful commodities, delineating key considerations for efficacious environmental tax design. Gago & Labandeira (2014) proffer a panoramic perspective on energy taxation and overarching green fiscal reformations, distilling experiences from diverse socio-economic milieus. These cumulative examinations emphasize the imperatives of an integrated modus operandi aligning economic proliferation with sustainable ecological guardianship. ...
This study examines the interplay between environmental tax revenue, renewable energy consumption, and sustainable exports in shaping Germany's green bond market from 2010 to 2022. Employing Quantile Regression, the research analyzes causal relationships and differential impacts across varying quantiles of the green bond market. Findings reveal that renewable energy consumption significantly boosts green bond issuance, while environmental tax revenues present a diminishing negative effect, suggesting targeted alleviations could enhance synergies. Furthermore, exports demonstrate decreasing adverse impacts, highlighting resilience. This research, the first German-specific econometric study in this domain, provides novel insights into the causal mechanisms of green finance flows. It underscores the complex interdependencies within the green finance ecosystem and offers valuable perspectives for policy-making in Germany's transition towards environmental sustainability. The study's methodology and insights contribute substantially to the academic discourse on green finance, guiding future research and policy strategies in this field.
... Aunque la fiscalidad ambiental en España presenta un carácter modesto, con gran énfasis en los impuestos energéticos (Gago et al., 2014(Gago et al., , 2016(Gago et al., , 2019Labandeira et al., 2019), también se han implementado y se vienen desarrollando nuevas propuestas en torno a la creación de nuevos impuestos en el marco de la EC; por ejemplo, impuestos sobre componentes químicos dañinos y residuos (Andretta et al., 2018;García-Carretero, 2019;Puig Ventosa, 2017;Sedeño López, 2021). De hecho, los mecanismos impositivos actuales adoptados por España como "circulares" se centran sobre todo en los residuos. ...
Artículos La fiscalidad y la economía circular en España: situación actual y potencialidades del uso de los beneficios fiscales a sugeydejesus.lopez@usc.es b juanalberto.turnes@usc.es c xavier.vence@usc.es Recibido: 09/09/2022; Aceptado: 11/01/2023 Resumen La transición a la economía circular implica un cambio profundo en los patrones de producción y consumo cuyo impulso requiere actuaciones coordinadas de las diferentes políticas (ambientales, regulatorias, industriales, innovación, compras públicas...) y, en particular, de la política fiscal. La orientación ambiental en los instrumentos fiscales puede constituir un instrumento clave para la transición de la EC y la sostenibilidad. Este estudio analiza la situación actual en España, constatando la ausencia de instrumentos de beneficios fiscales que favorezcan la EC para, posteriormente, identificar aquellos que pueden presentar potencialidades para promover la EC y la sostenibilidad. El artículo pone de manifiesto el volumen y la diversidad de estos mecanismos fiscales, el coste en la recaudación, así como también las figuras con una mayor incidencia, lo que ha permitido destacar las potencialidades, adversidades y retos que presenta la política de beneficios fiscales en España para el impulso de la EC y la sostenibilidad.
... Singh and Deswal's work discusses the implementation of a carbon tax in the form of an excise tax in India [6,7]. However, no other work has been completed in relation to the implementation of the Green Tax, etc. till date. ...
... Thus we can see that a whole lot of research has been done on the impact of Carbon taxes. Regarding implementation of Carbon Tax in terms of excise tax in India are discussed in the work of Singh and Deswal [6,7]. But there is no other work regarding implementation of Green Tax etc. till date. ...
The carbon footprints are increasing in the environment at an alarming rate mainly due to unplanned human activities. The world?s population will continue to grow at a rapid pace in the future. As a result, our future generations may find it difficult to live on this planet in a healthy manner. The world?s developed and developing countries began to investigate various methods for reducing their carbon footprint. However, it will not be sustainable if it is also not economically viable. In this scenario, maintaining a good profit for businesses while reducing their carbon footprint necessitates a pragmatic strategy. In this article, we will try to find a way out that will provide us with a practical solution. We will simulate the profitability of an upstream oil manufacturer that has invested heavily in green technologies. Under a carbon tax system, we will use the production-inventory model. This system assumes that capital investment in green technology can reduce emissions, and increase profits. We used data from the Oil and Natural Gas Corporation of India, available in its annual reports. As a matter of fact, the Oil and Natural Gas Corporation of India accounts for 70% of crude oil production in India and is a major player in India?s upstream oil companies. The results were quite encouraging, with deviations between expected and actual values being less than 10%. 2 Sen, Dutta Choudhury and Datta / Effect of Green Technology The findings also led us to believe that the excise duty and the pollution control tax levied in India can be regarded as a Green Tax or Carbon Tax. We used a published research model to find the optimal solution.
... At this point, it is also worth mentioning the publications of Dulebenets [73], Tran, Mao, Siebers [74], Rengs, Scholz-Wäckerle, and van den Bergh [75], presenting the impact of taxes on carbon dioxide emissions on the activities of enterprises as well as employment and innovation. Some authors also proved the relationship between the occurrence of environmental taxes and the level of welfare in many countries, for example, Goulder [63], Patuelli, Nijkamp, Pels [64], Anger, Bohringer, Loschel [65], Gago, Labandeira, López-Otero [66], Freire-Gonzalez [67], and Kuralbayeva [68]. ...
Environmental taxes, including energy taxes, are applied in all EU Member States. They are considered important instruments in the implementation of the EU energy and climate policies. The main purpose of the research presented in this article is to identify trends in the EU Member States in shaping environmental tax revenues, with particular emphasis on their most important group, i.e., energy taxes. The researchers sought answers to the research question regarding the existence of converging trends in this respect. The “letter values” method was used in the research procedure, which is an extension of the box-plots method. The analysis covered 27 EU Member States. The data used in the research came from the Eurostat database (2009–2020). As a result of the research, it was found that in the EU as a whole, there is a slight downward trend in the share of environmental tax revenues in GDP and the share of environmental tax revenues in total tax revenues, while the share of energy tax revenues in total environmental tax revenues shows a slight upward trend. The decomposition of the research and the conducted comparative analysis, including the determination of specific rankings, showed that both the level and trends in the shaping of the studied variables vary considerably in the individual EU Member States.
... From a theoretical point of view, a negative, i.e., favorable impact of taxes on adverse emissions is expected. The EU has favored these taxes because of numerous benefits they may generate (see Gago et al., 2014). However, Borozan (2018b) revealed poor efficiency of energy or environmental taxes and a redistribution effect in the EU over the period 2005-2017. ...
Despite considerable research attention given to the environmental Kuznets curve (EKC), little has been known about its true form and particularly the mechanisms that explain it. Using panel quantile regression, this paper designs a multivariate framework for exploring the EKC in the European Union in the period 2004–2017 and unveils the distributional heterogeneity effect hidden therein. It reveals that complexity in the relationship under consideration turned out to be higher than evidenced or assumed in the literature so far since its shape changed the form across the conditional distribution of greenhouse gas (GHG) emissions. Moreover, the paper shows that the use of efficient energy and renewable energy has the power to outweigh the scale effect. Simultaneously, it questions the efficiency of environmental and energy taxes and opens the issue of the rebound effect and the association between energy poverty and GHG emissions.
... Existe una amplia literatura empírica que evalúa los criterios anteriores en aplicaciones reales o hipotéticas de diversos tributos medioambientales en diversos países, con gran variabilidad en el diseño y uso recaudatorio (Gago et al., 2014). En general, los resultados apuntan al logro de impactos ambientales positivos, especialmente cuando se usan aproximaciones basadas en análisis ...
... Habitualmente, estas publicaciones realizan simulaciones ex-ante de los efectos de distintas alternativas, dadas las escasas y limitadas aplicaciones en la realidad, que se llevan a cabo mayoritariamente en el ámbito energético, si bien también existen estudios abundantes en los sectores de residuos y agua. En este contexto, la evidencia empírica académica para el caso español está en línea con las conclusiones del apartado anterior y con los resultados de la literatura internacional: los tributos medioambientales son efectivos en la corrección del problema medioambiental, no generan impactos económicos significativos y, a diferencia de lo observado en otros países, muestran unos efectos distributivos habitualmente moderados (Gago et al., 2014). ...
... Las compensaciones, por tanto, se deberían realizar de forma preferente mediante el uso de la recaudación (afectación a fines específicos). En general, se propone un uso recaudatorio medioambiental en línea con los desarrollos recientes de las reformas fiscales verdes (Gago et al., 2014), dedicando buena parte de los recursos a compensaciones distributivas, para compensar los impactos negativos sobre la competitividad y para promover el desarrollo y despliegue de tecnologías limpias. ...
... Existe una amplia literatura empírica que evalúa los criterios anteriores en aplicaciones reales o hipotéticas de diversos tributos medioambientales en diversos países, con gran variabilidad en el diseño y uso recaudatorio (Gago et al., 2014). En general, los resultados apuntan al logro de impactos ambientales positivos, especialmente cuando se usan aproximaciones basadas en análisis ...
... Habitualmente, estas publicaciones realizan simulaciones ex-ante de los efectos de distintas alternativas, dadas las escasas y limitadas aplicaciones en la realidad, que se llevan a cabo mayoritariamente en el ámbito energético, si bien también existen estudios abundantes en los sectores de residuos y agua. En este contexto, la evidencia empírica académica para el caso español está en línea con las conclusiones del apartado anterior y con los resultados de la literatura internacional: los tributos medioambientales son efectivos en la corrección del problema medioambiental, no generan impactos económicos significativos y, a diferencia de lo observado en otros países, muestran unos efectos distributivos habitualmente moderados (Gago et al., 2014). ...
... Las compensaciones, por tanto, se deberían realizar de forma preferente mediante el uso de la recaudación (afectación a fines específicos). En general, se propone un uso recaudatorio medioambiental en línea con los desarrollos recientes de las reformas fiscales verdes (Gago et al., 2014), dedicando buena parte de los recursos a compensaciones distributivas, para compensar los impactos negativos sobre la competitividad y para promover el desarrollo y despliegue de tecnologías limpias. ...
El Informe, de 800 páginas, da cumplimiento a la Resolución de creación del Comité, conforme a la que la futura reforma tributaria debe adecuarse a la realidad económica del siglo XXI y garantizar un sistema tributario “más equitativo, progresivo, justo y que incorpore la imposición medioambiental, digital y la perspectiva de género”. Se trata, con ello, de “sentar las bases para una reforma tributaria estructural a medio y largo plazo que modernice y aumente la eficiencia del sistema tributario de nuestro país”. En suma, el objetivo del Libro Blanco es servir de fundamento para una reforma del sistema tributario que garantice la sostenibilidad de las finanzas públicas, de manera que pueda responder a la financiación de los gastos públicos, contribuyendo a reducir el déficit estructural y al mantenimiento del Estado de Bienestar.
... The rest of the simulations showed that using revenues to reduce other taxes always reduces the costs of imposing an environmental tax. Other similar studies (Patuelli et al., 2005;Gago et al., 2013), using different types of meta-analysis methodologies, also showed some ambiguity in results. ...
Environmental taxation has been a permanent feature of the policy agenda over the past few decades. It has represented about 2.5 percent of GDP and 6 percent of total taxation in the EU in recent years. In this paper, we study the evolution of total environmental taxation and its two main subcategories, energy and transport taxes, as a percentage of GDP and as a share of total taxation in the EU, through a club convergence analysis of the period 1995–2016. From the GDP perspective, the results show three groups of countries or clubs for the total environmental taxation and only two clubs for the two other categories analysed. Considering the taxation structure perspective, two clusters emerge for the total environmental taxes, three for the energy case and only one for the transport taxation, denoting overall convergence in this case. These results indicate a high grade of convergence in environmental taxation in the EU.
... This approach enjoys widespread support from academia (e.g. Fullerton et al, 2010;Ekins and Speck, 2011;Gago et al, 2014a) as well as from international institutions (e.g. European Commission, 2015, 2017OECD, 2015OECD, , 2018OTA, 2017;EAERE, 2019;CLC, 2019aCLC, , 2019b; IMF 2019), but still is far from a global and meaningful implementation 3 . ...
... Although EET are likely to become central instruments for strategies in the transition towards decarbonized economies and have already played important roles in many advanced countries, Spain has been reluctant to use them based on their alleged negative effects on competitiveness and economic growth (Labandeira et al, 2009). Although empirical evidence for Spain shows that EET could actually generate significant tax revenues with reduced macroeconomic effects and moderate distributional impacts (see Gago et al, 2014aGago et al, , 2019, they have had scarce relevance within the Spanish tax system so far. Given the lack of interest from the central government, Spanish regions introduced several EET whose environmental and economic assessments have been, overall, negative (see Gago and Labandeira, 2014;Gago et al, 2014b;CERSTE, 2014;OECD, 2015, Montes, 2019. ...
The importance of energy-environmental taxation in the transition to decarbonized economies does not correspond to its actual role due to several constraints on its application. This paper emphasizes one of the main barriers, the negative impacts on distribution and equity, and suggests alternatives to mitigate these effects. In particular, it lists a series of fiscal proposals for road transport and aviation, sources of significant emissions, defined and empirically evaluated for the specific case of Spain, with compensatory packages to reduce their regressive nature and thus support their viability in practice.