France Križanič

The effects of taxes on depositing waste and CO2


In continental European countries (EU Member States) the increase of environmental taxes by 1% leads after one year to 0.13% reduction in the amount of deposited waste per capita. In the whole business sector and in the construction industry this influence is the greatest at the tax on used energy, the taxes and charges on pollution and the use of natural resources. An increase in taxes on transportation by 1% causes 0.5% reduction in emissions of CO2, the increase in energy taxes by 1% after one year effects 0.13% decline in emissions of CO2.
When there is a technological and economic potential which enables adaptation to the changed environmental tax rates, as is the case for landfill tax, increased tax rates lead to sharp pollution reduction and have a limited fiscal effect.

Keywords: economic welfare, externalities, taxation, environmental management

JEL: D6, D62, H2, Q2

Full article is available in Slovenian language.

Only a part of the articles in the publication Gospodarska gibanja (Economic Trends) is written in the English language. Please visit the Slovenian web page.


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