Title: Taxation, innovation and the environment.
Authors: Ash, Michael.; Organisation for Economic Co-operation and Development
Publisher: OECD,
Year: 2010
Subjects: Environmental impact charges; Taxation Environmental aspects.; Environmental protection Taxation.; Technological innovations Environmental aspects Taxation.; Environmental protection Technological innovations Taxation.
Abstract: Solving the world's environmental problems could take a significant toll on economic growth if only today's technologies are available. We know that innovation - the creation and adoption of new cleaner technologies and know-how - provides a means to achieve local and global environmental goals at significantly lower costs. Innovation is also a major driver of economic growth. OECD governments are increasingly using environmentally related taxes because they are typically one of the most effective policy tools available. Exploring the relationship between environmentally related taxation and innovation is critical to understanding the full impacts of this policy instrument as well as one potential facet of "green growth." By putting a price on pollution, do environmentally related taxes spur innovation? What types of innovation result? Does the design of the tax play a critical role? What is the effect of this innovation? In analysing these questions, this report draws on case studies that cover Japan, Korea, Spain, Sweden, Switzerland, the United Kingdom, Israel and others.
Contents: Foreword -- Abbreviations -- Executive Summary -- Introduction -- Current Use of Environmentally Related Taxation -- Effectiveness of Environmentally Related Taxation on Innovation -- Tax Design Considerations and other Tax-based Instruments -- A Guide to Environmentally Related Taxation for Policy Makers -- Annex A. Sweden's Charge on NOx Emissions -- Annex B. Water Pricing in Israel -- Annex C. Cross-country Fuel Taxes and Vehicle Emission Standards -- Annex D. Switzerland's Tax on Volatile Organic Compounds -- Annex E. R&D and Environmental Investments Tax Credits in Spain -- Annex F. Korea's Emission Trading System for NOx and SOx -- Annex G. UK Firms' Innovation Responses to Public Incentives: An Interview-based Approach -- Annex H. The UK's Climate Change Levy and Climate Change Agreements: An Econometric Approach -- Annex I. Japan's Tax on SOx Emissions.