Environmental tax evaluation : what can be learnt so far?

Leu, Thomas; Betz, Regina

Publication type:	Conference paper
Type of review:	Peer review (publication)
Title:	Environmental tax evaluation : what can be learnt so far?
Authors:	Leu, Thomas Betz, Regina
et. al:	No
Conference details:	International Energy Policies & Programmes Evaluation Conference, Amsterdam, Netherlands, 7-9 June 2016
Issue Date:	7-Jun-2016
Language:	English
Subject (DDC):	333.79: Energy
Abstract:	Energy and carbon taxes play a key role in many countries when aiming to meet their international climate targets. The design of these taxes varies substantially across countries. In 2012, according to the OECD, effective tax rates on carbon range from USD 3.10 to USD 117.70 per tonne of CO2. Countries with explicit carbon taxes, e.g. Sweden, Switzerland, Norway and Denmark, tend to have a higher effective carbon taxation. Within countries, there are often differences in the tax base and exempted sectors. For instance, Switzerland’s CO2 levy does not include motor fuels whereas in Denmark, energy-intensive industries are largely exempted if they enter a voluntary agreement on energy efficiency. Although these taxes have been in place for many years, there is little information available today on how well these did in fact perform. The main aim of this paper is to review the existing literature of ex-post evaluations of explicit carbon taxes as well as describing the most popular of the various evaluation methods and naming their benefits and drawbacks. In addition, an overview of the design of carbon and energy tax schemes is provided in order to understand the impact of the design on the evaluation method. To begin with, we assess the review literature on energy and carbon tax schemes as to select the countries and tax schemes to be reviewed. Each tax scheme is described accordingly to specific characteristics such as the targeted sectors and the tax base, the participants, the tax rate, possible exemptions and the resulting evidence of a reduction in greenhouse gas emissions. Furthermore, a literature review on existing expost evaluations is undertaken in order to compare different methods and to identify the data that is needed for a robust interpretation of the impacts of these tax schemes. Based on those examples, we illustrate the limitation of carbon tax evaluations, e.g. counterfactual and selection bias issues as well as spillover and rebound effects. Finally, we discuss options of how to improve existing studies and what requirement for the data would be necessary to do so. To sum up, both the evaluated results and their critical analysis will help to specify the focus of evaluation effort in the future. The systematic evaluation of the framework will help researchers in designing new ex-post evaluations of environmental and energy tax schemes. It should also inform upcoming debates on evaluation methods and data issues, providing important information to be used by political decision makers when introducing such tax schemes.
URI:	https://energy-evaluation.org/wp-content/uploads/2019/06/2016-paper-leu.pdf https://digitalcollection.zhaw.ch/handle/11475/17571
Fulltext version:	Published version
License (according to publishing contract):	Licence according to publishing contract
Departement:	School of Management and Law
Organisational Unit:	Center for Labor, Digital and Regional Economics (CLDR)
Appears in collections:	Publikationen School of Management and Law

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Leu, T., & Betz, R. (2016, June 7). Environmental tax evaluation : what can be learnt so far? International Energy Policies & Programmes Evaluation Conference, Amsterdam, Netherlands, 7-9 June 2016. https://energy-evaluation.org/wp-content/uploads/2019/06/2016-paper-leu.pdf

Leu, T. and Betz, R. (2016) ‘Environmental tax evaluation : what can be learnt so far?’, in International Energy Policies & Programmes Evaluation Conference, Amsterdam, Netherlands, 7-9 June 2016. Available at: https://energy-evaluation.org/wp-content/uploads/2019/06/2016-paper-leu.pdf.

T. Leu and R. Betz, “Environmental tax evaluation : what can be learnt so far?,” in International Energy Policies & Programmes Evaluation Conference, Amsterdam, Netherlands, 7-9 June 2016, Jun. 2016. [Online]. Available: https://energy-evaluation.org/wp-content/uploads/2019/06/2016-paper-leu.pdf

LEU, Thomas und Regina BETZ, 2016. Environmental tax evaluation : what can be learnt so far? In: International Energy Policies & Programmes Evaluation Conference, Amsterdam, Netherlands, 7-9 June 2016 [online]. Conference paper. 7 Juni 2016. Verfügbar unter: https://energy-evaluation.org/wp-content/uploads/2019/06/2016-paper-leu.pdf

Leu, Thomas, and Regina Betz. 2016. “Environmental Tax Evaluation : What Can Be Learnt so Far?” Conference paper. In International Energy Policies & Programmes Evaluation Conference, Amsterdam, Netherlands, 7-9 June 2016. https://energy-evaluation.org/wp-content/uploads/2019/06/2016-paper-leu.pdf.

Leu, Thomas, and Regina Betz. “Environmental Tax Evaluation : What Can Be Learnt so Far?” International Energy Policies & Programmes Evaluation Conference, Amsterdam, Netherlands, 7-9 June 2016, 2016, https://energy-evaluation.org/wp-content/uploads/2019/06/2016-paper-leu.pdf.