Documents
Resources
Learning Center
Upload
Plans & pricing Sign in
Sign Out

Greenhouse gas taxation in Estonia_ optimal environmental tax reform

VIEWS: 31 PAGES: 10

									Greenhouse gas taxation in Estonia: optimal environmental tax reform
Silja Lüpsik ESTONIA

Background of the research problem


Climate change  global warming Based on the “greenhouse effect” ↑ emission of greenhouse gases (GHG) = CO2, CH4, N2O, CFC gases Question: how to reduce GHG emissions?





Solution(?):


International institutions to reduce GHG emissions (Kyoto protocol, EU regulations)



Targeted environmental policy in a local (country) level
 Economic

instruments: environmental taxes

Present GHG taxation in Estonia
•

•

GHG emissions are taxed – relatively unique for CO2 Tax rate is very low
(0.48€ / ton of CO2 compared to 13.3€ CO2 in Denmark 1996)

•

•

Emissions are considerably big GHG tax rates are increased 20% every year until 2005.  Need for marginal GHG tax reform

Research objective
The goal of the research it to develop an optimal environmental tax reform in Estonia that considers local  economic,  social,  rural and  environmental aspects.

Present situation in Estonia
35000 30000 25000 20000 15000 10000 5000 0
Base year (1990/1995) 1999 2005* 2010*
TARGETS

GHG emissions Gg CO2 equivalent

1200 1000 800 600 400 200 0
CO2 Methane N2O

emissions have decreased considerably, but further reductions targeted

 GHG

Research model
POLICY OF GHG TAXATION
INPUT-OUTPUT MODEL BEHAVIORAL CHANGE
(CGE MODEL)

INTERNATIONAL INSTITUTIONS

OTHER POLICIES (Income tax, social policy etc)

HOUSEHOLD PRICES
(HOUSEHOLD BUDGET SURVEY)

OPTIMALITY

ANALYSIS:

WELFARE, REGIONAL ASPECTS, SOCIAL EXCLUSION, TRANSACTION COSTS etc

Issue - GHG emissions spatially concentrated
~94% of CO2 emissions

Institutional framework of research problem
•

GHG tax system forms an institution that considers
•
•

international obligations and local conditions

•

GHG tax reform promotes innovation and learning
• •

energy-efficiency measures on the company and household level; research for alternative energy production etc

Thank you!


								
To top