The OECD/EU database on environmentally related taxes Presentation at the “Economic Accounts for the Environment” and “Environmental Expenditure Statistics”

The OECD/EU database on environmentally related taxes

Presentation at the

“Economic Accounts for the Environment” and “Environmental Expenditure Statistics” meeting of

EUROSTAT

Luxembourg, 18 January 2001

By

Nils Axel Braathen, OECD, Environment Directorate

The database on environmentally related taxes

Is a joint OECD/EU project Can be accessed at

www.oecd.org/env/policies/taxes/index.htm Free of charge Through a number of predefined queries.

Definition of environmentally related taxes:

Any compulsory, unrequited payment to general government levied on a tax-base deemed to be of particular environmental relevance.

The name or purpose of the tax is not a criterion. A tax can be earmarked, but this is not a criterion. Levies paid to environmental funds outside

“general government” are not included. Some information on fees and charges (requited

payments) is however included in the database.

Revenues from environmentally related taxes In per cent of total tax revenues

0

2

4

6

8

10

12

14

Per

cen

t of

GD

P

1994 1995 1996 1997 1998

Shaded bars are low-end Secretariat estimates

Revenues from environmentally related taxes In per cent of GDP

0

1

2

3

4

5

Per

cen

t of

GD

P

1994 1995 1996 1997 1998

Shaded bars are low-end Secretariat estimates

Revenues from environmentally related tax-bases

21 OECD Member countries, 1995

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Mill

ion

US

dolla

rs

Contents of the databaseSearchableSearchable information on :

All tax-bases covered by each tax (Sometimes very many)

Definition of each tax-base in each tax Tax rates for each tax-base (In national currency and € )

Detailed description of all exemptions, refund mechanisms and tax ceilings for each tax

Revenues raised by each tax (1994-1998, in US$)

Administrative set-up Responsibility for payment of each tax Any earmarking: Share and purpose

Fuel tax rates in some OECD countries1.1.2000

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

Tax

rat

e p

er li

tre

in E

uro

, ave

rage

199

9 ex

chan

ge r

ates Unleaded petrol, High rate

Unleaded petrol, Low rateDiesel, High rateDiesel, Low rateLight fuel oil, used for heating

will be set up in co-operation between OECD and EEA; and

will coverTradable permit schemesDeposit / refund systemsEnvironmentally motivated subsidies

A complementary, connected, database

Main structure of the new database:Common for all schemes

SchemeID

Scheme NameE.g. SO2 emission permits

Country

Purpose

Year of Last RevisionDetails

Year of Introduction

IntroducingAuthority

Overall administrative

authority

Day-to-day administrative

authority Contact Person

Domain•Water pollution•Air pollution•Climate change•Land contamination•Waste management•Natural resource management

EvaluationReferences to relevant

publications.

Scheme category•Tradable permits system

•Deposit-refund system

•Subsidy

Deposit - refund systems

Scheme ID

Sub-scheme ID

Sub-scheme labelE.g.: Deposit -refund system

for PET bottles

Deposit rateWhat is charged

when a product is bought?

Refund rateWhat is charged when a product is handed in?

Return percentageWhich percentage of products bought is

handed in?

CommentsAny

additional information

DRS - Domain•Glass bottles•Plastic bottles•Aluminium cans•Other beverage containers•Other packaging•Batteries•Tyres•Motor vehicles•Other

Environmentally motivated subsidies

Scheme ID

Sub-scheme ID

Year Public expense or revenue- loss for the whole scheme

Subsidy Cost

Sub-scheme labelE.g.: Subsidies to promote energy

savings in SMEs

Subsidy criteria

What determines the size of the subsidy to be given? E.g.: The

degree of planned abatement or the assumed technical risk.

SS -YearSS - Cost

Public expense or revenue-loss for the sub-scheme

Subsidy type•Grant•Soft loan•Loan guarantee•Accelerated depreciation•Other

DetailsWhat is the subsidy

element? E.g.: Interest rate or guarantee fee 2% below the market rate.

Target group•Households•All enterprises•Manufacturing enterprises•Agriculture•Small / medium enterprises•Power generators•Public transport •Other

CommentsAny additional information.

Domain•Research and development•Investment in physical capital•Energy saving•Operation of treatment facilities in plants, etc.•Operation of public treatment facilities, etc.•Clean-up of earlier pollution•Market penetration of “clean” products•Training of employees•Other

Tradable permits

Scheme ID

Sub-scheme ID

Sub-scheme LabelE.g. SO

2-permits for

power plants

Sub-scheme Type Quotas Credits Averaging Obligations Others SS -Year SS - Revenue

Public revenue concerning the

sub-schemeTrade Yes No

TradablecommodityWhat is the

exact item thatcan be traded?

E.g.: The right toemit 1 kg SO2

TradingPartnersWho cantrade, with

whom?

Banking Yes No

Borrowing Yes No

Bubbles Yes No

Interzone tradewith offset rates Yes No

TP-domain CO2 SO2 NOx VOC Other Spatial

dimension•Local•Regional•National•International

Allocation type

•Unconditional grandfathering

•Conditional grandfathering•Auctioning•Other

Comments

Any additional information.

Transaction numberHow many

separate trades took place in a

given year?

Trade volume

How many items was traded a given year?

Permit pricesExamples of prices per traded item.Monitoring

type

Continuous measurement,

estimates based on technologies

used, etc.?

Year

RevenuePublic

revenue concerning the whole scheme

Number of

permits available

Contact points between the two databases

Country Thus, it will be easy to extract information concerning all

types of instruments in a given country.

Scheme domain, such as Water pollution, Air pollution, Climate change, Land contamination, Waste

management, Natural resource management

Hence, one can easily extract information on all types of instruments used in a given domain -- in one country or more.

Next steps

Ensure good co-ordination. (Statistical offices, Ministries, OECD, EU)

Update tax rates and rules, etc, per 1.1.2001, using special CD-ROMs. (OECD, MoF)

Collect information concerning other economic instruments, using CD-ROMs. (OECD, MoE, MoF)

Linking physical data to tax bases? (SO, EUROSTAT, OECD)

Calculate effective tax rates? (SO, EUROSTAT, OECD)