GREEN TAX

經濟四  陳彥蓉   

英文四  高詩琴  

財二甲  呂宥儕   

財二甲  施純淨  

財二乙  陳碩耘   

企三甲  黃瑞峯   

企三甲  王志源   

企三乙  劉時傑   

企三乙  邱士銘  

企三乙  蔡健宏  

WHAT IS GREEN TAX?

Definition→Green tax offers a means of tackling market

failures that arise when businesses and consumers are not confronted with the full health and environmental costs associated with their activities

→Correct market failures

Other terms of Green Tax → Environmental tax 、 Ecological tax (Ecotax)

HOW??→Environmental charge can address market

failure by providing price signals that more accurately reflect these costs

→Polluters incorporate these costs into their decision-making process and product prices.

→Behavior affection

ANALYSIS OF GREEN TAX

Advantages1. Encourage cost-effective emission reductions2. Flexible3. Revenue creation4. Stimulate technological innovation→Make the economy more efficient

Disadvantages1. DO NOT guarantee a ceiling on the amount

of pollution released, just on the cost of pollution control

2. Adequate only when emissions are relatively easy to measure or monitor

EXAMPLES

1. Carbon levy→A tax on fossil fuels based on their carbon

content→Proportional to the amount of carbon dioxide

released when coal, oil and natural gas are burned for energy

→Generate 8 billion to 38 billion per year (USD)

EXAMPLES

2. Nitrogen fertilizer charge ( 氮肥料稅 )→ Farmers over apply fertilizer→ Excess nitrogen ends up in coastal waterways→Nutrient overloading and oxygen-depleted→ “Dead Zone” occurs→ Bottom-dwelling organisms die and fish are

driven away→ Affect shrimp, crab, and oyster…

EXAMPLES

3. Environmental user fees→ Taxes assessed on the use of or access to

publicly held resources→ Ex: National forest entrance fees

DOUBLE DIVIDEND ( 雙重紅利 )

Where do the benefits of green tax come from?

Pearce (1991): “ Environmental taxes might offer a so-called double dividend (DD).”

This idea received scant attention until the early 1990s when climate change policy attracted economists’ attention to the topic

From the aspect of labour market ：‧Impose green tax‧ Shift the burden of taxation away from labour to environment by cutting the existing labour tax ‧Working incentives of labours ↑ (income tax)‧ Employment rate ↑

HOWEVER…..

Double Dividends are not necessarily positive

The problem is that other tax revenues may decrease by more than the increase in tax revenue through the environmental tax.

Total Tax

Revenue Other Taxes

Green Tax

Total Tax

Revenue Other Taxes ↓

Green Tax

Ideally Practically ?

↑

Total Tax

Revenue

Originally

↓

OR

VALIDITY OF DOUBLE DIVIDEND

No consensus on any single test or experiment that would validate or repudiate

Revenue-recycling effect vs. Tax-interaction effect

─ Bovenberg & Mooij (1994)

Strong form vs. Weak form ─Goulder （ 1995 ）

GREEN TAX IN EUROPE-1 Definition of “Green Tax”

Negative impact on the environment Taxes on air pollutant are common

Sulfur dioxide 、 Nitrogen dioxide European Union:

Cap-and-trade Composition of Green Tax revenue

Energy: 76% Transportation: 21% Pure pollutant tax: 3%

Proportion of Green Tax revenue to GDP: 3 % Proportion of Green Tax revenue to Total

revenue : 7%

CAP AND TRADE Goal : To steadily reduce carbon dioxide

and other greenhouse gas emissions economy-wide in a cost-effective manner.

Cap : Each large-scale emitter, or company, will have a limit on the amount of greenhouse gas that it can emit.

Trade : It will be relatively cheaper or easier for some companies to reduce their emissions below their required limit than others

GREEN TAX IN EUROPE-2

GREEN TAX IN EUROPE-3

GREEN TAX IN UNITED STATES-1

Fewer Green Taxes than European countries

Green Tax at federal level: Gas guzzler Ozone-depleting substance

Green Tax at State and Local level: Pay-per-bag disposal charge

GREEN TAX IN UNITED STATES-2

Gasoline Tax: Federal gasoline tax: 18.4 cents a gallon States add an average of 20 cents more

Is gasoline tax a green tax? Proponents:

Reduce pollution and driving costs not borne by drivers Opponents:

Over 80% of the revenue spent in road construction

GREEN TAX IN UNITED STATES-3

GREEN TAX IN TAIWAN The Green Tax We Already Have Now The Green Tax Some Hope to Have in the

Future in 3 counties: Yun Lin ( 雲林 ) Hua Lian ( 花蓮 ) Kao Xiong ( 高雄 )

THE GREEN TAX WE ALREADY HAVEAir pollution tax Started in 1995 The Object the immobile and mobile pollutant The Air Pollution Index 5 kinds: the nitrogen oxide, the sulfur

dioxide, the ozone, inspiratory suspended particle and the carbon monoxide.

The Taxation: 0.5-0.9 billion per season The Main Objects:

electric power industry (61%)chemical manufacturing industry(8.5%)the spin and weave industry (5.9%)

SO, WHERE DOES THE TAXATION GO? 60% of the money goes where the pollution is.

執行空氣品質

改善維護計畫

一般建築及設備

執行空氣品質改善

維護計畫

研究規劃

空氣品質監測、資

料庫更新

移動污染源管制

固定污染源管制

綜合計畫

一般行政

DRAFT TAXES

Proposed by: Kao Xiong, Hua Lian, Yu Lin Reason: pollution Method: impose tax on polluting firms Goal:

Decrease pollution Increase government revenue

KAO XIONG The Founder: County bureau of public finance The Reason : CO2 emission amount: 1st in the world The Object: The firms which emit CO2 more than 10,000 ton a

year The principle: Progressive taxation CO2 emission amount < 2 million ton: $50/ ton 2~4 million ton: $ 60/ ton > 4 million ton: $ 70/ ton >10 million ton: $100/ ton

ASSESSED BENEFIT

2.88 billion NT And the taxation from CSC( 中鋼 ) ， CPC( 中

油 ) and Taipower( 台電 ) accounts to 2.8 billion NT.

e.g. CSC:

21.78 million tons of C02 a year 1.7 billion NT

Hua Lian: 1. > 10,000 ton: $50 per ton 2. Assessed Benefit: 6 hundred million NT a year Yun Lin: 1. > 100,000 ton: $100 per ton > 200,000 ton: $ 200 per ton 2. Assess Benefit: 9 billion NT a year

THE OBJECTION

From the labour union: “Imposing green tax will block the

development.” e.g. Taipower If the draft passes, they will have to pay

more than 6 hundred million.

MAIN CONFLICTS

Should the carbon tax be levied by the central or local?

Equity: If the tax is levied by the central From the labour union: It will block the development.

PROBLEMS AND SOLUTIONS ON IMPOSING GREEN TAX-(1)1. The Taiwan government has imposed

environment tax to increase tax revenue but improving the environment should be the priority of green tax not increased revenue.→ Ans: We can follow the examples of countries which have been imposing green tax for years.

2. The public may think they are burdened with a new tax, also imposing more tax may lead to inflation.

→ Ans: Tax shifting

PROBLEMS ON IMPOSING GREEN TAX-(2)

3. Imposing a green tax may bring a heavier burden on those with low income.→ Ans: Governments should prevent double taxation; or design appropriate compensation plans to specific individuals or industry.

4. Imposing a green tax may have a negative effect on the taxed good's industry which means that the economy of the country might face recession or stop growing in the long run.→ Ans: The Government should adopt experts' suggestion in the domain of both public finance and environment.

ex. Tax exemptions, reduced tax rates

5. It is difficult to legislate laws concerning green tax because both the government and opposition party may not want to impose a new tax due to political reasons.

→ Ans: Increase public awareness regarding environmental issues; active involvement of stakeholders; implemented gradually

CONCLUSION

REFERENCES (1) ─ ACADEMIC JOURNALS

Hanson, Craig (2006), “A Green Approach to Tax Reform”, Issues in Science and Technology v. 22 no. 2 (Winter 2006) p. 25-7

Goulder, L. H., (1995), “Environmental Taxation and the ‘Double Dividend’: A Reader’s Guide.” International Tax and Public Finance, August, 2 (2), pp. 157-83.

Schwartz, J. and Repetto, R (2002), “Nonseparable utility and the double dividend debate” : reconsidering the tax-interaction effects. Environmental and Resource Economics 15, 149-157.

Barde Jean-Philippe (2004), “Green tax reforms in OECD countries: An overview”

李涵茵 (2002) 。《從國外綠色租稅財政改革經驗看我國環境稅制之規劃研究》，財團法人台灣綜合研究院

李涵茵 (2002) 。《環保就業、雙重紅利 》，台灣綜合展望 陳鴻達（ 2001 ）。《綠色租稅改革 - 歐美環境稅的推動現況 》，財稅研究第

33 卷第 4 期， 161-192

REFERENCES (2) ─ WEBSITES

Tax Policy Centerhttp://www.taxpolicycenter.org/index.cfm 環境資訊中心 http://e-info.org.tw/node/41567 聯合報「高雄市碳稅徵收條例未過關」http://udn.com/NEWS/NATIONAL/BREAKINGNWS1/4928105.shtml 自由時報「雲林縣欲徵碳稅 中央不准」http://www.libertytimes.com.tw/2009/new/feb/21/today-life4.htm

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