IDEAS home Printed from https://ideas.repec.org/p/diw/diwwpp/dp349.html
   My bibliography  Save this paper

Energy Taxation and Competitiveness: Special Provisions for Business in Germany's Environmental Tax Reform

Author

Listed:
  • Michael Kohlhaas

Abstract

Environmental taxation very often comprises special provisions for parts of the business sector in order to attenuate effects on competitiveness of emissionintensive activities. This paper discusses motives, alternative designs and criteria for the evaluation of such safeguards and analyzes if such provisions can reconcile environmental and economicobjectives. It looks at theoretical aspects as well as practical issues of implementation and evaluates special provisionsthat have been discussed or implemented in the framework of the environmental tax reform (ETR) introduced in Germany in 1999. This reform is characterized by two features: Firstly, it aims at the reduction of greenhouse gases and thus at a global environmental problem. Secondly, environmental taxes are embedded in the framework of a revenue-neutral tax reform, where the additional tax revenue is recycled to the tax payers by a reduction of social security contributions. The reform should finance "non-insurance-related benefits" of the pension insurance system in order to reduce labor costs and spur employment.

Suggested Citation

  • Michael Kohlhaas, 2003. "Energy Taxation and Competitiveness: Special Provisions for Business in Germany's Environmental Tax Reform," Discussion Papers of DIW Berlin 349, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwwpp:dp349
    as

    Download full text from publisher

    File URL: https://www.diw.de/documents/publikationen/73/diw_01.c.40455.de/dp349.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. William J. Baumol & Wallace E. Oates, 1971. "The Use of Standards and Prices for Protection of the Environment," Palgrave Macmillan Books, in: Peter Bohm & Allen V. Kneese (ed.), The Economics of Environment, pages 53-65, Palgrave Macmillan.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tilmann Rave & Ursula Triebswetter & Johann Wackerbauer, 2013. "Koordination von Innovations-, Energie- und Umweltpolitik," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 61.
    2. Claudia Kettner-Marx & Daniela Kletzan-Slamanig, 2018. "Carbon Taxes from an Economic Perspective," WIFO Working Papers 554, WIFO.
    3. Daniela Kletzan & Angela Köppl & Kurt Kratena, 2008. "Ziele und Optionen der Steuerreform: Optionen für eine Ökologisierung des österreichischen Steuersystems," WIFO Studies, WIFO, number 33944, February.
    4. Angela Köppl & Gregor Thenius & Stefan Schleicher, 2008. "Impacts of the EU Emissions Trading Scheme: Insights from the First Trading Period with a Focus on Competitiveness Issues," WIFO Studies, WIFO, number 33963, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Frans P. Vries & Nick Hanley, 2016. "Incentive-Based Policy Design for Pollution Control and Biodiversity Conservation: A Review," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(4), pages 687-702, April.
    2. Claudia Kettner-Marx & Daniela Kletzan-Slamanig, 2018. "Carbon Taxes from an Economic Perspective," WIFO Working Papers 554, WIFO.
    3. Jonathan Colmer & Ralf Martin & Mirabelle Muûls & Ulrich J. Wagner, 2020. "Does pricing carbon mitigate climate change? Firm-level evidence from the European Union emissions trading scheme," CEP Discussion Papers dp1728, Centre for Economic Performance, LSE.
    4. Michael Grubb & Tim Laing & Thomas Counsell & Catherine Willan, 2011. "Global carbon mechanisms: lessons and implications," Climatic Change, Springer, vol. 104(3), pages 539-573, February.
    5. Jascha-Alexander Koch & Jens Lausen & Moritz Kohlhase, 2021. "Internalizing the externalities of overfunding: an agent-based model approach for analyzing the market dynamics on crowdfunding platforms," Journal of Business Economics, Springer, vol. 91(9), pages 1387-1430, November.
    6. Patrick Criqui & Denise Cavard, 2004. "Economic approach to climate policies and stakes of international negotiations," Post-Print halshs-00003793, HAL.
    7. Brookshire, David S & Burness, H Stuart, 2001. "The Informational Role of the EPA SO2 Permit Auction," Journal of Regulatory Economics, Springer, vol. 20(1), pages 43-60, July.
    8. Stavins, Robert & Hahn, Robert & Cavanagh, Sheila, 2001. "National Environmental Policy During the Clinton Years," RFF Working Paper Series dp-01-38, Resources for the Future.
    9. Agnar Sandmo, 2002. "Efficient Environmental Policy with Imperfect Compliance," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 23(1), pages 85-103, September.
    10. Teresa Famulska & Jan Kaczmarzyk & Małgorzata Grząba-Włoszek, 2022. "Environmental Taxes in the Member States of the European Union—Trends in Energy Taxes," Energies, MDPI, vol. 15(22), pages 1-20, November.
    11. Hassan, Mahmoud & Oueslati, Walid & Rousselière, Damien, 2020. "Environmental taxes, reforms and economic growth: an empirical analysis of panel data," Economic Systems, Elsevier, vol. 44(3).
    12. Woerdman Edwin & Nentjes Andries, 2019. "Emissions Trading Hybrids: The Case of the EU ETS," Review of Law & Economics, De Gruyter, vol. 15(1), pages 1-32, March.
    13. Roediger-Schluge, Thomas, 2001. "The Stringency of Environmental Regulation and the 'Porter Hypothesis'," Research Memorandum 002, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    14. Kort, P.M., 1992. "The Effects of Marketable Pollution Permits on the Firm's Optimal Investment Policies," Papers 9242, Tilburg - Center for Economic Research.
    15. Winkler, Harald, 2005. "Renewable energy policy in South Africa: policy options for renewable electricity," Energy Policy, Elsevier, vol. 33(1), pages 27-38, January.
    16. Abrego, Lisandro & Perroni, Carlo, 1999. "Free-riding, carbon treaties, and trade wars: the role of domestic environmental policies," Journal of Development Economics, Elsevier, vol. 58(2), pages 463-483, April.
    17. Sofia Lundberg & Per-Olov Marklund & Elon Strömbäck, 2016. "Is Environmental Policy by Public Procurement Effective?," Public Finance Review, , vol. 44(4), pages 478-499, July.
    18. van Suntum, Ulrich & Böhm, Tobias & Oelgemöller, Jens & Ilgmann, Cordelius, 2011. "Walter Eucken`s principles of economic policy today," CAWM Discussion Papers 49, University of Münster, Münster Center for Economic Policy (MEP).
    19. Jean-Charles Hourcade & Khalil Helioui & Laurent Gilotte, 1997. "De quelques paradoxes autour de la fixation d'une taxe internationale sur le carbone," Revue Économique, Programme National Persée, vol. 48(6), pages 1509-1528.
    20. Peter Kort & Paul Loon & Mikulás Luptácik, 1991. "Optimal dynamic environmental policies of a profit maximizing firm," Journal of Economics, Springer, vol. 54(3), pages 195-225, October.

    More about this item

    Keywords

    environmental taxes; competitiveness; tax shift.;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:diw:diwwpp:dp349. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bibliothek (email available below). General contact details of provider: https://edirc.repec.org/data/diwbede.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.