Accounting for India's Forest Wealth - Madras School of Economics

Table 7: Impact of the Green Shift in Taxation: SelectedInternational EvidenceCountry andTaxFinland -energy andcarbon taxNorway -carbon andsulphurdioxide taxesDenmark -energy andcarbon taxSwedenenergy&carbon taxesTheNetherlandsenergytaxGermanyenvironmentaltax reform,taxes ontransport,fuels&electricityUK-Industrialenergy taxPeriod ImpactEvaluated1990-2005 CO 2 emissions 7 percent lower than would haveotherwise beenA shift from carbon tax to output tax on electricity in1997 may have lessened impact1991-2007 21 percent reduction in CO 2 from power plants by199514 percent national reduction in CO 2 in 1990's, 2percent attributed to carbon tax12 percent reduction in CO 2 emissions per unit ofGDP1992 CO 2 emissions in affected sectors down by 6 percentand economic growth up by 20 percent between1988 and 1997 and a 5 percent reduction inemission in one year in response to tax increaseIn 1990s a 23 percent reduction in CO 2 from asusual trend and energy efficiency increased by 26percentSubsidy to renewables may have accounted forgreater proportion of emissions reductions than tax1990-2007 Emissions reductions of 0.5 million tons per annumEmissions would have been 20 percent higher than1990 levels without tax1999-2007 Emissions 3.5 percent lower than would haveotherwise beenLow tax rates may have limited impact1999-2005 CO 2 reduced by 15 percent between 1990 and 1999and 1 percent between 1999 and 2005CO 2 emissions 2-3 percent lower by 2005 than theywould have been without taxGerman re-unification an important factor inreductions2001-2010 UK CO 2 emissions reduced by 2 percent in 2002 and2.25 percent in 2003 and cumulative savings of 16.5million tonnes of carbon up to 2005Reduction in UK energy demand of 2.9 percentestimated by 2010Source: Green Fiscal Commission (2009).SourceNordiccouncil 2006NordicCouncil 1999OECD 2001OECD 2006Nordiccouncil 2006OECD 2006NordicCouncil 2006Nordiccouncil 2006SwedishMinistry ofFinance2004Financeministry, theNetherlands2007EEA 2007OECD 2006CambridgeEconometrics2005HMT 200630