The efficiency of the green taxes as instruments for environmental protection (original) (raw)
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Environmental pollution has been a vital issue day by day due to the increase of production and consumption activities, the rapid increase of the world population and varieties of people’s needs accordingly. The dream of leaving an indigenous and unpolluted nature for the future generations has been getting difficult because of polluting the nature and besides since no measures have been adequately taken to prevent pollution of the environment. Today the states have used the tax policies to reach the goals on environmental policy and by taxation of factors damaging environment, it has been mainly aimed that those who degrade the environment should bear the penalty of the degradations they do, rather than increasing public incomes. Environmental taxes are known as green tax, carbon tax, emission tax and pollution tax in the literature. In this study, at first it will be explained the contributions of environmental taxes and their implementations in different countries in the literature, then compared environmental taxes in our country with implementations in different countries; finally the lacks on this topic and some theoretical approaches will be analyzed. Keywords: Environment, Pollution, Tax, Tax Policy
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The devastation of the environment occurs mainly as a result of intensive economic development. The study of its consequences is a subject of interest of experts from various professional orientations. Economic theorists, ecologists and all those involved in the creation of solutions in the field of environmental policy, product designers and new technological procedures constantly point to the need for alignment of economic development goals and the environmental consequences that economic progress causes. Excluding natural disasters, external diseconomies in production are the most powerful cause of environmental degradation, regardless of whether they occur in the form of hydro, aero or lithium pollution. The aim of this paper is to show how the introduction of pollution taxes affects the behavior of market players, the amount of pollution and the magnitude of social well-being. In most cases, the market mechanism cannot adequately address the problem of negative externalities in production. But, on the other hand, this state, because of limited information on the consequences of environmental damage or for other reasons, through its intervention in the market, can produce an outcome worse than that created by the uncontrolled market.
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The emergence of industrial revolution led to one of the biggest century long global problem of environmental pollution. It is the environment which is much more talked among people of different classes and peoples of various walks of life and as consequence various international treaties, accords; conventions were established, ratified and re-affirmed in the last few decades. Environment conservation and mitigation of pollutant has become inevitable. Economic growth and environmental pollution goes hand by hand. The human civilization is not able to compromise with growth and hence there has to be a fine balance between these two. Thus, environmental taxation (ET) becomes inevitable weapon to check ecological imbalance because of over harvesting of natural resources which is essential segment of economic growth and industry. The correct policy of ET can be the major deterrent towards environmental degradation and bringing sustainable growth. The de-Novo approach discussed in the current paper includes dual dimension of TERI’s parameter for evaluation of a project site and Environmental Impact Assessment (EIA) techniques and then evaluating the net taxation for that project against the harms it has done to the environment. The tax rate has to be commensurate with the environmental damage it has caused. Further, incentive based taxation has also been discussed to promote the use of renewable resources of energy including possible gradual shifts towards solar appliances & bio-fuels from petrol based. The TERI and EIA approach can be integrated to assign the tax incentives to motivate environmental improvements. A factor corresponding to % percent compliance of a project with TERI criteria is computed and tax incentive is granted using a mechanism discussed in the paper while the revenue generated can be collected towards government fund of India or towards GCF . The collection of green tax must be monitored by all the concerned agencies under supervision of Ministry of Environment and Forest, (MOEF). The discussed approach can be used further for various other industries like medical industry in terms of environmental damages caused by the medical waste and to find out its environmental impact or for the ill effects of nuclear waste generated. The policies could be and should be designed based on the model discussed to bring out optimal contribution of these industries towards generating resources for India’s future economic growth.
Mismatches in the Concept of Environmental Taxes
WU International Taxation Research Paper Series No. 2015-02, 2015
Environmental taxation has become as a key element of green economy and sustainable growth. The relevance of taxation in this field is based on the effectiveness of eco-taxes to control the environmental cost. Nevertheless, the use of environmental taxation is not free from criticisms due to the fact that a tax is addressed to fund public expenditures. In this paper, the author tackles the mismatches found in the concept of environmental taxes. With the purpose to turn into a Sustainable and Green European Economy, environmental taxes could promote the reduction of pollution or avoid the most dangerous activities for the environment.
Evaluation of Environmental Taxes Influence to the Business Environment
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Purpose: Environmental taxes present important indirect economic tool for achieving of environmental goals in the sense of environmental burden decreasing. The importance to deal with environmental taxes is connected also with European directives for waste management, reuse and recycling, energy recovery. The goal of the contribution is to analyse position and importance of environmental taxes establishment in Visegrad region. Methodology: To achieve determined goal, there was made analysis of environmental taxes in tax system of Slovakia, development of tax rates and collection of environmental taxes. Approach: Research of development and evaluation of environmental taxes had been done according to the newest available data from databases Eurostat, OECD, Ministries of individual Visegrad region countries, and Customs and Taxes Administrations of individual Visegrad region countries. Findings: Results of the contribution prove influence of the environmental tax introduction to the tax system and primary impact to the business behaviour with orientation to the eco-innovation processes. The further problems of environmental taxes evaluation should be orientated to the systematic tool for solving of environmental policy not only at the national, but also at the multinational level.
The purpose of the paper is to present a modified model of an internalizing external costs caused by the operation of a manufacturing unit in conjunction with the new reality created. The environment is characterized as a public good. Public goods are goods that provide benefits for society as a whole or part of it, usually regardless of whether the individual people are willing to pay to have these benefits. All entities, whether individuals or businesses or public agencies, have some financial resources with which they seek to achieve specific objectives (e.g. profit maximization). To achieve a specific objective usually there are many alternatives and possibilities. To be effective, i.e. to utilize the existing resources in the best manner possible, should be selected that the solution maximizes the desired outcome or minimizes the required sacrifices.
Issues and Objectives of Green Tax Reform Ovidius University Annals, Economic Sciences Series
In this paper we try to argue why the environmental tax reform should be welcome, especially in our times of economic and financial instability. Therefore, we first state some principles of welfare economics concerning the environment and also remind the debate and outcomes on the double dividend paradigm. Then we briefly review and analyse the main instruments of environmental fiscal policy and their potential impact on public finances. We are now able to figure and analyse the main objectives, outlooks and issues of implementing a green tax reform in the European Union. In the end are some conclusions and recommendations for an effective environmental taxation in Romania.
Environmental responsibility versus taxation
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Taxation, as a tool of environmental economic policy, traditionally aims at generating a discouraging effect upon both the consumer and producer. Environmental degradation should finally stabilize itself. The mechanism of taxation replies to a behavioural stimulus (taxes versus subsidies). Recent economic analyses have not aimed at focusing their studies concerning the very responsibility of economic actors on anything else other than the mechanism of taxation. Taxes thus imply responsible behaviour. We shall attempt to highlight that responsibility could be defined independently from taxation and that the affirmation of responsibility is inversed to taxation. Technically speaking, we shall demonstrate that the taxation extolled by the legislator induces a certain crowding out effect as regards to responsibility. In the first part of this article we shall therefore insist that economic policies in terms of taxation drive away the sentiment of individual responsibility. We shall reason in terms of production and consumption to demonstrate this fact. Finally, we shall insist that a high degree of responsibility could substitute taxation. D
Estonian Discussions on Economic Policy, 2014
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