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Proposal for a Green Tax Reform in Cyprus

Author

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  • Theodoros Zachariadis

    (Department of Environmental Science and Technology, Cyprus University of Technology)

Abstract

Cyprus is faced with serious energy and environmental challenges, which may be exacerbated in the future because of climate change. This paper formulates a proposal for a fiscally neutral green tax reform, which can significantly contribute towards the transition to a path of economically and environmentally sustainable development. We propose the gradual implementation of a carbon tax to those sectors that are not subject to the EU Emissions Trading System, a water scarcity charge and a landfill tax for municipal and industrial waste that is disposed of in landfills. We demonstrate the environmental benefits and the increase in public revenues that these taxes will bring about in the medium and long run, and assess the effect of these taxes on firm competitiveness and social equity.

Suggested Citation

  • Theodoros Zachariadis, 2016. "Proposal for a Green Tax Reform in Cyprus," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 10(2), pages 127-139, December.
    • Handle: RePEc:erc:cypepr:v:10:y:2016:i:2:p:127-139
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    References listed on IDEAS

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    1. Zachariadis, Theodoros & Hadjinicolaou, Panos, 2014. "The effect of climate change on electricity needs – A case study from Mediterranean Europe," Energy, Elsevier, vol. 76(C), pages 899-910.
    2. Michael Jakob & Ottmar Edenhofer, 2014. "Green growth, degrowth, and the commons," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 30(3), pages 447-468.
    3. Oecd, 2013. "Climate and Carbon: Aligning Prices and Policies," OECD Environment Policy Papers 1, OECD Publishing.
    4. Alexandros Polycarpou & Theodoros Zachariadis, 2013. "An Econometric Analysis of Residential Water Demand in Cyprus," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(1), pages 309-317, January.
    5. Zachariadis, Theodoros & Taibi, Emanuele, 2015. "Exploring drivers of energy demand in Cyprus – Scenarios and policy options," Energy Policy, Elsevier, vol. 86(C), pages 166-175.
    6. European Commission, 2013. "Tax reforms in EU Member States - Tax policy challenges for economic growth and fiscal sustainability – 2013 Report," Taxation Papers 38, Directorate General Taxation and Customs Union, European Commission.
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    Cited by:

    1. Theodoros Zachariadis & Elias Giannakis & Constantinos Taliotis, 2022. "A First Assessment of the Economic Impact of the “Fit for 55†Energy and Climate Policy Package in Cyprus," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 16(2), pages 1-26, December.
    2. Jenny Gabriela Peña Balderrama & Thomas Alfstad & Constantinos Taliotis & Mohammad Reza Hesamzadeh & Mark Howells, 2018. "A Sketch of Bolivia’s Potential Low-Carbon Power System Configurations. The Case of Applying Carbon Taxation and Lowering Financing Costs," Energies, MDPI, vol. 11(10), pages 1-20, October.
    3. Zachariadis,Theodoros & Giannakis,Elias & Taliotis,Constantinos & Karmellos,Marios & Fylaktos,Nestor & Howells,Mark Idwal & Blyth,William James & Hallegatte,Stephane, 2021. ""Building Back Better" in Practice: A Science-Policy Framework for a Green Economic Recovery after COVID-19," Policy Research Working Paper Series 9528, The World Bank.

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