Environmental taxation without damaging competitiveness
Environmental taxes raise tax revenues, increase energy efficiency and reduce emissions and environmental damage. However, many countries are reluctant to implement them, fearing negative impacts on competitiveness. Here we present the lessons learned from Denmark.
Denmark is one of the most energy efficient economies in the world. In 1996, it became one of the first countries in Europe to introduce a CO2-tax on top of existing energy taxes and to subject the business sector to a reduced rate of CO2-tax.