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Introducing Carbon Taxes at Member State Level. Issues and Barriers

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  • Stefan E. Weishaar

Abstract

This paper examines the implementation issues and barriers for introducing a carbon tax at EU member state level. Important success determinants are related to the political economy of introducing taxes (negotiations with stakeholders, concessions, changes in proposed legislation, compromises, etc.) which translate i.a. into competitiveness issues, and fairness/equity/distribution issues. For these the design of the carbon tax exemptions, and safeguards to prevent progressivity and the use of the tax proceeds are important. The analysis will focus on the "frontrunner" countries in the EU which have been very successful in terms of the introduction of carbon taxes (Sweden, Denmark and Finland). The countries employed different implementation strategies but underscore the importance of successful issue, timing, linking and to foster political support by safeguarding competitiveness and by addressing income distributions.

Suggested Citation

  • Stefan E. Weishaar, 2018. "Introducing Carbon Taxes at Member State Level. Issues and Barriers," WIFO Working Papers 557, WIFO.
    • Handle: RePEc:wfo:wpaper:y:2018:i:557
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    File URL: https://www.wifo.ac.at/wwa/pubid/60974
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    References listed on IDEAS

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    1. Buchanan, James M, 1987. "Tax Reform as Political Choice," Journal of Economic Perspectives, American Economic Association, vol. 1(1), pages 29-35, Summer.
    2. Jenny Sumner & Lori Bird & Hillary Dobos, 2011. "Carbon taxes: a review of experience and policy design considerations," Climate Policy, Taylor & Francis Journals, vol. 11(2), pages 922-943, March.
    3. Bruvoll, Annegrete & Larsen, Bodil Merethe, 2004. "Greenhouse gas emissions in Norway: do carbon taxes work?," Energy Policy, Elsevier, vol. 32(4), pages 493-505, March.
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    Cited by:

    1. Margit Schratzenstaller-Altzinger & Alexander Krenek, 2019. "Tax-based Own Resources to Finance the EU Budget. Potential Revenues, Summary Evaluation from a Sustainability Perspective, and Implementation Aspects," WIFO Working Papers 581, WIFO.
    2. Nihal Ahmed & Adnan Ahmed Sheikh & Zeeshan Hamid & Piotr Senkus & Ricardo Cosio Borda & Aneta Wysokińska-Senkus & Waldemar Glabiszewski, 2022. "Exploring the Causal Relationship among Green Taxes, Energy Intensity, and Energy Consumption in Nordic Countries: Dumitrescu and Hurlin Causality Approach," Energies, MDPI, vol. 15(14), pages 1-15, July.
    3. Ewringmann, Dieter & Mackscheidt, Klaus, 2022. "Lenkungssteuern und Lenkungsabgaben: Ein Diskurs zur Leistungsfähigkeit abgabenrechtlicher Regelungen," FiFo Discussion Papers - Finanzwissenschaftliche Diskussionsbeiträge 22-3, University of Cologne, FiFo Institute for Public Economics.
    4. Karimu, Amin & Bali Swain, Ranjula, 2023. "Implication of electricity taxes and levies on sustainable development goals in the European Union," Energy Policy, Elsevier, vol. 177(C).
    5. Berger, Johannes & Köppl-Turyna, Monika & Strohner, Ludwig, 2021. "Analyse der CO₂-Abgaben im internationalen Vergleich inklusive Maßnahmen und Handlungsspielräume zur Vermeidung der Verlagerung von CO₂-Emissionen," Policy Notes 48, EcoAustria – Institute for Economic Research.

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    Keywords

    Carbon taxes; Climate change;

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