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Tax expenditures for environmental sustainability: international experiences in their identification and evaluation to enhance their governance

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  • Redonda, Agustin
  • Berg, Sofia
  • Von Haldenwang, Christian

Abstract

This report analyses tax expenditures aimed at promoting environmentally sustainable production activities and processes. Drawing on a global-scope database and a set of specific international experiences, it explores how these instruments are currently being used and evaluated. To this end, it presents a methodology for identifying and classifying the environmental tax expenditures applied in different parts of the world. It also provides an in-depth analysis of four country cases (Germany, Indonesia, Ireland and South Africa), with an emphasis on how they are evaluated. The document also addresses the main governance issues in environmental tax expenditures, in view of the costs and benefits attached to these public policy instruments; and it presents policy recommendations to enhance their effectiveness and legitimacy.

Suggested Citation

  • Redonda, Agustin & Berg, Sofia & Von Haldenwang, Christian, 2025. "Tax expenditures for environmental sustainability: international experiences in their identification and evaluation to enhance their governance," Documentos de Proyectos 82550, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    • Handle: RePEc:ecr:col022:82550
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