Transcript Ecological tax reforms ETR

Ecological tax reforms ETR
• Shift fiscal burden from labour to ‘things’ and
assets
• Carbon tax and other taxes may generate 2-3%
GDP in revenue
• Andersen et al. (EEA) Estimate overall 35 billions in
Italy
• (false) problems
– Inflationary?
– Regressive? (even VAT is..)
– Reduce competitiveness….(to be checked.. Porter
hypothesis)
4
3.5
inflation
3
2.5
EMU
2
US
JAP
1.5
Cina
1
0.5
0
-0.5
2014
2015
2016
2017
8
7
6
growth
5
EMU
4
US
JAP
3
Cina
2
1
0
2014
2015
2016
2017
•Total environmental and energy taxes (% GDP); source: Eurostat
•Share of GDP, total Energy taxes
•Share of GDP, environmental & resource taxes
Two options
 Labour oriented reycling
 Increase labor demand of
unskilled and young
through cuts.
 Not a long run growth fact
 Innovation oriented
reycling.
 Energy efficiency stimulus
 Through creation of trusts
and funds that finance
innovation
 General technological
innovation (recyling on the
basis of energy use..) or ex
ante defining the type
(tender on specific issues)?
GERD total
2.75
2.55
2.35
2.15
EU (27 countries)
1.95
Germany
France
1.75
Italy
United Kingdom
1.55
1.35
1.15
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
0.95
ETR: national and decentralised levels
 National levels of taxation (Sox, Co2 taxes on non
ETS sectors, ETS auctioning)
 Regional and local levels
 Landfill taxes, PM taxes, water resource taxes,
other resource taxes on minerals, aggregates…
 They could abate IRAP, the ‘hated’ regional tax on
economic activity, around 30 billions
 Issue of ‘Resource taxation reform’ RTR
•
•
•
•
Environmental externalities still at the heart of ETR
rationale
Muller, Mendelshon,
• Transport, energy,
Nordhaus (2011),
agriculture, much more
Environmental Accounting
pollution intensive than
for Pollution in the US
manufacturing (very
economy, AER, 1649-75.
low in E/VA: 0.01 vs 0.1
Definition of gross and net
transport)
external damages
• Transport and
Gross external damage of
US economy 182 billions $
manufacturing both
Net external damage (GED –
account 10% of total
regulation costs, tax
•
Intuitive
figure
for
Italy:
payments)
20-25 Billions €.