Ecological Tax Reform Theory and Reality. Education Labeling Liability Regimes Regulation Voluntary...
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Transcript of Ecological Tax Reform Theory and Reality. Education Labeling Liability Regimes Regulation Voluntary...
Ecological Tax Reform
Theory and Reality
Education
Labeling
Liability Regimes
Regulation
Voluntary AgreementsPermitTrading
Taxation
environmental taxation
Tax base x Tax rate Tax revenue=
Tax base x Tax rate Tax revenue=
↓
a case study in theory
Tax base x Tax rate Tax revenue=
↓
a case study in tax policy
Tax base x Tax rate Tax revenue=
↓
a case study in politics
Theories
• Pigouvian theory
Pigouvian Theory
tax base x tax rate = tax revenue↓
external cost
Theories
• Pigouvian theory
• Polluter pays principle
Polluter Pays Principle
tax base x tax rate = tax revenue↓
for what?
Polluter Pays Principle
tax base x tax rate = tax revenue↓
external costsrestoration costs
cost required to abate pollution
Theories
• Pigouvian theory
• Polluter pays principle
• Least cost abatement
Least Cost Abatement
tax base x tax rate = tax revenue↓
cost required to abate pollution
Theories
• Pigouvian theory
• Polluter pays principle
• Least cost abatement
• Double dividend
Double Dividend
tax base x tax rate = tax revenue↓
tax rate under another theory that provides sufficient revenue for
tax reduction
The Choice
tax base x tax rate = tax revenue↓
external costsrestoration costs
cost required to abate pollutioncost required for tax reduction
Tax base x Tax rate Tax revenue=
↓
a case study in tax policy
Tax policies affecting the tax base
• Environmental effectiveness
• Administrative feasibility
• Economic effect
Tax policies affecting the tax base
• Environmental effectiveness
• Administrative feasibility
• Economic effect
Tax policies affecting the tax base
• Environmental effectiveness
• Administrative feasibility
• Economic effect
• Equity
Tax policies affecting the tax base
• Environmental effectiveness
• Administrative feasibility
• Economic effect
• Equity
• Still environmentally effective?
Tax base x Tax rate Tax revenue=
↓
a case study in politics
tax base x tax rate = tax revenue ↓
- $$$
+ $$$
Proposed energy incentives
• Wind and biomass -- $1 billion
• Solar -- $71 million
• Alternative fuel vehicles -- $2.4 billion
• Politically easy; fiscally difficult
Environmental tax increase
Dedicated revenues=
How to spend the money?
Deficit reduction
Other tax relief
Where is the political will?
Effective fabric or the emperor’s new clothes?
The evidence to date
Tolerance Principles
• Iterative approach
• Best available alternative
• Cost allocation ethic
• Educational function
Effective fabric or the emperor’s new clothes?
Ecological Tax Reform
Theory and Reality
Education
Labeling
Liability Regimes
Regulation
Voluntary AgreementsPermitTrading
Taxation
U.S. Taxes in 2000
• $2 trillion federal tax revenues
• $540 billion state tax revenues
• $332 billion local tax revenues
• Total -- $2.9 trillion
Taxation -- and Environment
Taxation Environment
•
Environmental Taxes
