11 November 2009 - By
Jens C. Pedersen - A comprehensive book
on carbon-energy taxation has been released
by Oxford University Press. The book is
edited by professors Mikael Skou Andersen,
National Environmental Research Institute
(NERI), Aarhus University and Paul Ekins,
University College London. The book is pan-European
in scope and contains analysis of many countries,
from Slovenia and Finland to the UK. It
includes a full introduction to carbon and
energy taxation and its implications.
When taxes are introduced
on carbon and energy, and the revenue is
used to reduce other taxes, will a positive
effect be achieved both for the environment
and for the economy? In 11000 Finland was
the first country to introduce a tax on
CO2. Later, Sweden, Denmark, Netherlands,
Slovenia, Germany and the UK followed suit
with tax reforms that shifted taxation from
labour to carbon and energy. Over the years,
CO2 and energy taxes have gradually been
raised, so that in Europe taxes of more
than 25 billion euro a year have been shifted.
This book examines carbon-energy
taxation in detail and looks at tax shifting
programmes for lowering other taxes. It
offers extensive analysis on the basis of
historical data and seeks to answer important
questions for policy-making, such as: What
was the impact of tax shifting for economic
performance and competitiveness? By how
much were emissions of CO2 reduced? Could
energy-intensive industries further reduce
their fuel demand or did they loose market
shares? To what extent appeared a 'leakage'
from Europe, so that production and CO2
emissions were shifted to other countries
or regions without CO2-abatement policy?
Emissions trading
The use of unique and
original data, including sector-specific
energy prices and taxes, as well as the
use of advanced statistical techniques,
such as co-integration analysis and panel-regression
techniques along with the time-series estimated
macro-economic model E3ME, make this a truly
comprehensive volume.
On the basis of the
lessons learned in Europe, the volume indicates
how carbon-energy taxation could usefully
be combined with emissions trading, and
discusses implications for future international
climate policy, including how the IPCC recommendations
for a gradual escalation in carbon price
could be accomplished while preventing carbon
leakage.
The book is targeted
to academics, researchers and graduate students
in energy economics, environmental economics,
European studies and taxation. Policymakers,
professionals and politicians in tax, energy,
transport and environment administrations
could also benefit from reading the book.
Public lectures
The editors have launched/will be launching
the book in public lectures at:
Dublins Economic and
Social Research Institute by Paul Ekins
(14 October)
Peking University by Mikael Skou Andersen
in a session led by a member of China’s
COP-15 delegation rounded up by Raj Pachauri,
Chair of IPCC (30 October)
Pontifical Catholic University of Argentina
in Buenos Aires, by Mikael Skou Andersen
(12 November)
Professor Mikael Skou
Andersen, tel. +45 8920 1555, msa@dmu.dk
Carbon-Energy Taxation.
Lessons from Europe. Edited by Mikael Skou
Andersen and Paul Ekins. Oxford University
Press 2009. 352 pages. Price: £55.00
