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Business and the genesis of the European Community carbon tax proposal

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  • Tony Ikwue
  • Jim Skea

Abstract

The purpose of this paper is to examine the role of business in the regulatory process associated with the carbon tax proposal. The first part of the paper describes the Community's climate change policy, noting first the essential features of Community environment policy‐making, the role of consultation with industry and the significance of the ‘subsidiarity’ principle. This part of the paper moves on to examine the carbon tax proposal and its evolution since 1990. The second part of the paper addresses the specific role which business played in influencing the development of the carbon tax proposal. The general strategy of business was to block the proposal entirely. The paper identifies the potential impacts of the tax on business, implications for corporate strategies and the specific channels through which business influenced the tax proposal, by participating in public debates, through representations to different directorates of the European Commission or by making a case to national authorities. The final part of the paper attempts to draw some lessons about: the business position in relation to large scale environmental problems such as climate change; business responses to economic instruments such as the carbon/energy tax; and the wider relationship between public authorities and business in regulatory processes. The question of whether this relationship has entered a new phase or whether there is still ‘business as usual’ is addressed.

Suggested Citation

  • Tony Ikwue & Jim Skea, 1994. "Business and the genesis of the European Community carbon tax proposal," Business Strategy and the Environment, Wiley Blackwell, vol. 3(2), pages 1-10.
  • Handle: RePEc:bla:bstrat:v:3:y:1994:i:2:p:1-10
    DOI: 10.1002/bse.3280030202
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    Cited by:

    1. Jonatan Pinkse, 2007. "Corporate intentions to participate in emission trading," Business Strategy and the Environment, Wiley Blackwell, vol. 16(1), pages 12-25, January.
    2. Barker, Terry, 1998. "The effects on competitiveness of coordinated versus unilateral fiscal policies reducing GHG emissions in the EU: an assessment of a 10% reduction by 2010 using the E3ME model," Energy Policy, Elsevier, vol. 26(14), pages 1083-1098, December.
    3. Christophe Bonneuil & Pierre-Louis Choquet & Benjamin Franta, 2021. "Early warnings and emerging accountability: Total’s responses to global warming, 1968-2021," Post-Print halshs-03390521, HAL.
    4. Christophe Bonneuil & Pierre-Louis Choquet & Benjamin Franta, 2021. "Early warnings and emerging accountability: Total’s responses to global warming, 1968-2021," SciencePo Working papers Main halshs-03390521, HAL.
    5. Sarasini, Steven, 2013. "Institutional work and climate change: Corporate political action in the Swedish electricity industry," Energy Policy, Elsevier, vol. 56(C), pages 480-489.
    6. Tiberio Daddi & Niccolò Maria Todaro & Maria Rosa De Giacomo & Marco Frey, 2018. "A Systematic Review of the Use of Organization and Management Theories in Climate Change Studies," Business Strategy and the Environment, Wiley Blackwell, vol. 27(4), pages 456-474, May.
    7. Sato, Misato & Rafaty, Ryan & Calel, Raphael & Grubb, Michael, 2022. "Allocation, allocation, allocation! The political economy of the development of the European Union Emissions Trading System," LSE Research Online Documents on Economics 115431, London School of Economics and Political Science, LSE Library.

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