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Improving Energy System Efficiency in the Czech Republic

Author

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  • Artur Radziwill

    (OECD)

Abstract

A carbon intensive energy system in the Czech Republic contributes to one of the highest ratios of greenhouse gas (GHG) emissions to GDP in the OECD. While EU emission reduction commitments provide the most visible and binding motivation for changing the way in which the country produces and uses energy, action is also required to improve energy security and public health and to avoid an adverse impact of emission reduction on economic growth and living standards. Energy system transformation requires ensuring a comprehensive, consistent and stable policy framework with stronger ex ante and ex post evaluation. A single carbon price should be achieved through the Emission Trading System (ETS) and carbon taxation. Excise tax rates on all fossil energy sources and products should be realigned, based on their carbon content and other environmental externalities, notably by increasing the relative taxation of diesel. Sectoral policies that complement carbon pricing in promoting greener energy sources, energy efficiency and less fuel intensive transport need to be strengthened. Améliorer l'efficacité du système énergétique en République tchèque Le système énergétique de la République tchèque, gros émetteur de carbone, est en partie à l’origine de l’un des plus hauts ratios d’émission de gaz à effet de serre (GES) dans la zone OCDE. Si les engagements pris dans le cadre de l’UE en matière de réduction des émissions sont la raison la plus évidente et impérative de changer les modes de production et de consommation de l’énergie dans le pays, il est également nécessaire d’agir pour améliorer la sécurité énergétique et la santé publique, ainsi que pour éviter que la réduction des émissions n’ait un impact négatif sur la croissance économique et les niveaux de vie. La transformation du système énergétique nécessite un cadre d’action global, cohérent et stable ainsi que des évaluations ex ante et ex post plus solidement étayées. Il faudrait aboutir à un prix unique du carbone au moyen du système communautaire d’échange de quotas d’émission (SCEQE) et de la taxation du carbone. Les taux des droits d’accise sur toutes les sources et tous les produits énergétiques fossiles devraient être réalignés, en fonction de leur teneur en carbone et d’autres externalités environnementales, notamment en relevant le niveau relatif de la taxation du gazole. Les politiques sectorielles qui complètent la tarification du carbone pour agir en faveur des sources d’énergie plus vertes, de l’efficacité énergétique et des transports moins énergivores doivent être renforcées.

Suggested Citation

  • Artur Radziwill, 2012. "Improving Energy System Efficiency in the Czech Republic," OECD Economics Department Working Papers 941, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:941-en
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    File URL: http://dx.doi.org/10.1787/5k9gsh6mcgzp-en
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    More about this item

    Keywords

    carbon tax; carbon trading systems; Czech Republic; efficacité énergétique; emissions; energy efficiency; infrastructure; infrastructure; marchés des droits d’émission de carbone; République tchèque; taxe carbone; transport; transport; émissions;

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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