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Economic and social implications of moving towards environmental sustainability through fiscal reform

Objective

To assess the implications for equity (income distribution) of the move towards environmental sustainability in various countries within Europe, and in the EU as a whole.

OBJECTIVES:
To assess the implications for equity (income distribution) of the move towards environmental sustainability in various countries within Europe, and in the EU as a whole.

DESCRIPTION:
The problems of data collection and analysis, particularly those concerned with the distributional aspects of income and expenditures, are addressed in respect of relevant potential and actual environmental policy measures. Data is drawn from Germany, Spain, Sweden, the UK, Switzerland and the EU as a whole.
i) Evaluation of Measures
The project examines the likely effects of a variety of proposed fiscal measures with environmental objectives, including both tax-based measures, such as carbon or sulphur taxes, and expenditure-based measures, such as incentives for energy-saving and/or investment in infrastructure.
ii) Distributional Implications of Environmental Policies
The income distributional effects of taxes on environmentally sensitive goods such as home heating oil; the revenue recycling from these taxes as well as other environmental benefits are examined.
The project develops scenarios which allow the assessment of the overall effects of the measures described in i) and in part the effects shown in ii) above. These will be presented in a form helpful to policy evaluation.

Funding Scheme

CSC - Cost-sharing contracts

Coordinator

University of Cambridge
Address
Sidgwick Avenue
CB3 9DE Cambridge
United Kingdom

Participants (4)

Fundacion Tomillo
Spain
Address
136,Calle Serrano
28006 Madrid
Infras AG
Switzerland
Address
18,Rieterstraße
8002 Zürich
Institut for Social Ekologiste Ekonomi AB
Sweden
Address
Karlhall
153 95 Jarna
WUPPERTAL INSTITUTE FOR CLIMATE, ENVIRONMENT AND ENERGY
Germany
Address
19,Doeppersberg 19
42103 Wuppertal