Fact Sheet: The Swedish NOX emissions tax

Fact Sheet: The Swedish NOX emissions tax

Soil acidification and water eutrophication caused partly by emissions of NOX from combustion processes in transport, industry and power plants has been a major problem in Sweden since the 1980s. The NOx tax and reimbursement system were introduced in 1992 with the intent of reducing emissions of NOX from energy generation in combustion plants and combined heat and power plants. The NOX tax is an economic instrument that aims to give incentive for operators to reduce emissions and invest […]

Environmental fiscal reform and social equity

Environmental fiscal reform and social equity

Environmental taxes can raise tax revenues, boost energy efficiency and reduce emissions and pollution. For countries short of revenues with ambitious environmental policies, environmental taxes are a logical choice. Some critics argue that environmental taxes hit the poor hardest. Is this true ? – and if it is, what can we do about it? We base our answers on lessons learned from 25 years of environmental taxation in Denmark. Download […]

Green tax shift boosts employment

Green tax shift boosts employment

A green tax shift reduces taxes on labour, which encourages job creation, and increases taxes on pollution or other environmentally harmful activities. In Denmark, government calculations assume that a green tax shift has positive employment effects. When the Ministries of Finance and Economy calculate short-term (first year)1 effects of tax increases on GDP and employment, they use standard multipliers developed over time and based on actual experience. These multipliers predict changes resulting from a […]

Fact sheet: Tax on plastic bags

Fact sheet: Tax on plastic bags

The extensive use of plastic carrier bags is a serious environmental problem. The yearly consumption of plastic carrier bags in EU is nearly 100 billion, and 92% are single-use bags. The extensive use of mainly oil-based plastic bags is a waste of resources and an environmental challenge. Around 3% of the marine litter in Europe is “shopping bags including pieces”. The main purpose of the Danish plastic bag tax, introduced in 1994, was […]

The Danish Packaging tax

The Danish Packaging tax

The production of waste as a by-product from consumable goods is growing with an increased consumption in both developed and undeveloped countries. In Denmark, 447 kg waste is produced annually per person (2011), of this 61% is recycled while 29% is incinerated and 6% is landfilled. Of household waste, which constitute ¼th of all waste, 22% is recycled. In Europe, the EU Waste Framework Directive and specifically the EU Directive 94/62 (European Parliament and […]

Fact Sheet: The Danish motor vehicle taxes

Fact Sheet: The Danish motor vehicle taxes

In Denmark, two different taxes must be paid; A registration tax and an annual green owner tax. The registration tax, which is a purchase tax, was introduced already in 1910. The main purpose was to ensure that vehicle owners contribute to the public expenditures of road maintenance and construction. Today the registration tax aims to reduce the number of vehicles in Denmark. In addition, an annual weight-based tax had to be paid from 1910 until 1997. […]