Conceptual approaches to improving carbon dioxid taxation in Ukraine

The domestic carbon tax needs to improve tax administration to ensure its fiscal efficiency and reduce transaction costs for tax compliance. Despite the fact that in the Tax Code of Ukraine the calculation of such a tax is based on the actual indicators of CO2 emissions, in practice it is based on the amount of resources consumed and the characteristics of the production process. Accordingly, the difficulties in administering this tax are the complexity of tax audits and the need to involve environmental experts. All this does not allow to adhere to the principle of cost-effectiveness of taxation and highlights the need to find opportunities to simplify the process of tax administration on the basis of world best practices. The purpose of the article is to outline conceptual approaches to improving carbon taxation, which will allow Ukraine to simplify tax administration and together with the EU to effectively combat the effects of climate change in order to increase security and create new opportunities for Ukrainian business under the European Green Deal. The methodological basis of the study was the use of a set of general and special methods: generalizations and scientific abstraction, historical and logical, extrapolations, spatial and graphical and tabular methods of visualization. The application of the SWOT analysis method and the systematization of European practice revealed that the most acceptable for Ukraine is the use of tax on CO2 emissions in the form of an indirect tax on energy consumption. Coefficients of carbon content in fuel, calorific value of fuel and its oxidation factor were used to convert the emission base carbon tax into the fuel base carbon tax. The implementation of these proposals will help increase the efficiency of administration of such a tax, as it will: 1) reduce the number of taxpayers through the introduction of the institution of tax agents while increasing the amount of tax paid by one taxpayer; 2) simplify the procedure for calculating the tax base by taxpayers and employees of tax authorities; 3) increase the fiscal efficiency of the environmental tax on carbon dioxide emissions from stationary sources by 50% in the case of setting the CO2 price at UAH 10 per ton (5-fold when setting the CO2 price at UAH 30 per ton in accordance with the proposals of the bill No 5600) and to attract potential revenues from the transport sector in the amount of 0.06% of GDP. The use of practical proposals and recommendations obtained in the article will increase the effectiveness of Ukraine's tax policy by forming a set of measures which will reduce the energy dependence of the national economy, including through incentives for energy-saving and climate-neutral technologies, reduce the burden on the environment, and will help simplify the administration of environmental taxes while increasing their fiscal efficiency. Research materials can be used in the preparation of draft regulations and policy documents in the field of environmental and excise taxation, which is within the competence of the Ministry of Finance of Ukraine, as well as in the formation of proposals, reservations and recommendations to other regulations on improving environmental and excise taxation initiated both by the authorities of the executive power of Ukraine, and the Verkhovna Rada of Ukraine on improving environmental and excise taxation. The theoretical results are the development of a general theory of fiscal administration for environmental and excise taxation.

Download Full-text

Analysis of Carbon Tax on Selected European Countries: Does Carbon Tax Reduce Emissions?

Applied Economics and Finance ◽

10.11114/aef.v5i1.2843 ◽

2017 ◽

Vol 5 (1) ◽

pp. 29

Author(s):

Ali Eren Alper

Keyword(s):

Carbon Dioxide ◽

Global Warming ◽

Natural Gas ◽

Carbon Dioxide Emissions ◽

Fossil Fuels ◽

Carbon Tax ◽

Panel Data Analysis ◽

Rapid Development ◽

European Countries ◽

Environmental Taxes

Since the first days of its existence, the humanity had been using natural resources to meet its needs. Especially along with the globalization period as a result of the Industrial Revolution and the rapid development of communication technologies within the last fifty years, the production has increased significantly in the world and has created negative effects on the environment. The leading adverse effects involve the emission of greenhouse gases and the global warming, which stem from the energy supply of fossil fuels as the main inputs of production. The global warming can be described as an increase in temperature worldwide. Irreversibility is the most important feature of the global warming. Therefore, in the absence of objective measures, the future costs would be much higher than the current ones. For this reason, governments need to take various measures to reduce the volume of emissions. The most important of these measures is carbon taxes. Carbon taxation encourages individuals to use fewer fossil fuels and to find new sources of energy by increasing the cost of using fossil fuels that cause carbon dioxide emissions through the price mechanism. To this end, the impacts of carbon tax levied in 18 selected European countries on economic growth, urbanization, natural gas and petroleum usage, and CO2 emissions are examined by panel data analysis for the 1995-2015 period. The analysis results indicate that a 1% increase in environmental taxes reduces carbon dioxide emissions by 0.9%. Furthermore, it is reported that a 1% increase in natural gas and petroleum consumption among the variables included in the analysis increased carbon dioxide emissions by 0.1% and 0.7%, respectively; while a 1% increase in urbanization reduced carbon dioxide emissions by 0.9%.

Download Full-text

Do Environmental Taxes Pay Off? The Impact of Energy and Transport Taxes on CO2 Emissions in Transition Economies

South East European Journal of Economics and Business ◽

10.2478/jeb-2018-0016 ◽

2018 ◽

Vol 13 (2) ◽

pp. 126-143 ◽

Cited By ~ 1

Author(s):

Sabina Silajdzic ◽

Eldin Mehic

Keyword(s):

Co2 Emissions ◽

Tax Policy ◽

Carbon Dioxide Emissions ◽

Emerging Market ◽

Environmental Taxes ◽

Economic Agents ◽

Dynamic Framework ◽

Policy Measures ◽

Eastern European Countries ◽

The Impact

Abstract In this paper we investigate the impact of environmental taxes on CO2 emissions in the context of emerging market economies. An attempt has been made to identify what role environmental policy and specific tax policy measures play in understanding the relationship between economic development and environmental degradation. The empirical analysis covers ten Central and Eastern European countries in the period from 1995 to 2015. The latest data on environmental taxes are available only from 1995. We contribute to recent literature in two respects. First, we study this relationship within a dynamic framework in which we take into account the issues of serial correlation and endogeneity in the regressors due to the cointegration relationship. Specifically, we rely on the fully-modified least squares (FM-OLS) estimation technique to model the long-term relationship between income and carbon-dioxide emissions. Second, this paper advances our understanding on the effectiveness of tax policy measures in curbing CO2 emissions, on which we have scarce empirical evidence. The results of this analysis provide rather strong evidence in support of an inverted U-shaped relationship between economic growth and the environment. However, environmental taxes do not seem to be effective in modifying the behaviour of economic agents and in protecting the environment. The results are robust to different models.

Download Full-text

The Effectiveness of Environmental Taxes in Reducing CO2 Emissions in Passenger Vehicles: The Case of Mediterranean Countries

International Journal of Environmental Research and Public Health ◽

10.3390/ijerph18105442 ◽

2021 ◽

Vol 18 (10) ◽

pp. 5442

Author(s):

Mónica Meireles ◽

Margarita Robaina ◽

Daniel Magueta

Keyword(s):

Co2 Emissions ◽

Environmental Taxes ◽

Transport Sector ◽

European Federation ◽

Fiscal Policies ◽

Passenger Vehicles ◽

Mediterranean Countries ◽

Vehicle Demand ◽

The Mediterranean ◽

Using Data

The transport sector is the biggest source of CO2 emissions in Europe. It is responsible for over a quarter of all greenhouse gas emissions. Passenger vehicles, alone, account for nearly 41% of these emissions, resulting in human health impacts. To meet the Paris climate commitments, cars and vans should be decarbonized until 2050. Such a transformation requires general changes, such as how the vehicles are owned, taxed, and driven. The European Federation for Transport and Environment revealed that Mediterranean countries tend to emit less per vehicle compared to the northern and central Europeans. Intriguingly, this does not necessarily correspond to motorization rates. In this article, we assess whether the observed reductions in CO2 emissions in the Mediterranean countries can be attributed to vehicle taxation on CO2 emissions. We apply panel data econometric techniques using data on annual registrations from 2008 to 2018 and model the demand for new-vehicle purchases and their responsiveness to changes in both CO2-based taxation and circulation tax. Our results show the determinants of new-vehicle demand and the change in the emissions rate in each country under the taxation currently adopted. We found that fiscal policies can have an important role in reducing the emission in the Mediterranean countries.

Download Full-text

Assessment of the impact of COVID-restrictions on the economy of Ukraine and the world

Technology audit and production reserves ◽

10.15587/2706-5448.2021.235461 ◽

2021 ◽

Vol 3 (4(59)) ◽

pp. 46-50

Author(s):

Serhii Voitko ◽

Tetiana Mazanko

Keyword(s):

Economic Growth ◽

Carbon Dioxide ◽

Co2 Emissions ◽

Economic Activity ◽

Carbon Dioxide Emissions ◽

Negative Impact ◽

Economic Research ◽

Transport Sector ◽

The World ◽

The Impact

The object of research is the processes of reducing economic activity in Ukraine and the world during COVID-restrictions, reducing the amount of carbon dioxide emissions in 2020 compared to 2019 by country and in various sectors of the economy. The most topical researches and publications in which the given questions are covered are analyzed. Based on statistical data, the paper shows a slight decline in Ukraine's GDP in 2020. Based on the consideration of the negative impact of quarantine restrictions, it was noted that the type of economic activity (EA) such as passenger transport suffered the most. At the same time, as the production of foreign trade, the performance of retail trade and construction has improved its dynamics. Elsewhere in the world, there has also been a slight economic downturn, while China has been able to maintain a slight increase in GDP. For 2021, there is a positive outlook for economic growth. The introduction of lockdowns and quarantine restrictions has led to a simultaneous reduction in CO2 emissions worldwide and reduced the negative impact on the environment. Thanks to the data of carbon dioxide emissions monitoring, it is possible to see a significant reduction in emissions since the beginning of COVID-restrictions in 2020. At the end of the year, the level of emissions reached almost the same level as before the restrictions, but the total volume for the year decreased significantly. If to look at the sectors, the largest amount of carbon dioxide emissions decreased in the aviation sector. This also applies to the land transport sector. Peaks of falling CO2 emissions occur in April 2020. The study showed that the reduction in economic activity due to «lockdowns» and quarantine restrictions affected the fall in energy consumption, especially in the aviation and land transport sectors, and this, in turn, led to a reduction carbon dioxide. This duly explains the relationship between declining economic growth and reducing CO2 emissions. The conducted research will be of interest to relevant ministries and departments in terms of their areas of responsibility, relevant organizations dealing with environmental and economic research, specialists who study and use in practice research on socio-economic problems of society.

Download Full-text

Greenhouse gas emissions vs CO2 emissions: Comparative analysis of a global carbon tax

Applied Energy ◽

10.1016/j.apenergy.2021.117223 ◽

2021 ◽

Vol 298 ◽

pp. 117223

Author(s):

Duy Nong ◽

Paul Simshauser ◽

Duong Binh Nguyen

Keyword(s):

Comparative Analysis ◽

Greenhouse Gas Emissions ◽

Greenhouse Gas ◽

Co2 Emissions ◽

Carbon Tax ◽

Gas Emissions ◽

Global Carbon

Download Full-text

Future Power Train Solutions for Long-Haul Trucks

Sustainability ◽

10.3390/su13042225 ◽

2021 ◽

Vol 13 (4) ◽

pp. 2225

Author(s):

Ralf Peters ◽

Janos Lucian Breuer ◽

Maximilian Decker ◽

Thomas Grube ◽

Martin Robinius ◽

...

Keyword(s):

Fuel Cells ◽

Co2 Emissions ◽

Value Chain ◽

Large Scale ◽

New Technology ◽

Co2 Reduction ◽

Road Transport ◽

Transport Sector ◽

Long Distance ◽

Production Of Hydrogen

Achieving the CO2 reduction targets for 2050 requires extensive measures being undertaken in all sectors. In contrast to energy generation, the transport sector has not yet been able to achieve a substantive reduction in CO2 emissions. Measures for the ever more pressing reduction in CO2 emissions from transportation include the increased use of electric vehicles powered by batteries or fuel cells. The use of fuel cells requires the production of hydrogen and the establishment of a corresponding hydrogen production system and associated infrastructure. Synthetic fuels made using carbon dioxide and sustainably-produced hydrogen can be used in the existing infrastructure and will reach the extant vehicle fleet in the medium term. All three options require a major expansion of the generation capacities for renewable electricity. Moreover, various options for road freight transport with light duty vehicles (LDVs) and heavy duty vehicles (HDVs) are analyzed and compared. In addition to efficiency throughout the entire value chain, well-to-wheel efficiency and also other aspects play an important role in this comparison. These include: (a) the possibility of large-scale energy storage in the sense of so-called ‘sector coupling’, which is offered only by hydrogen and synthetic energy sources; (b) the use of the existing fueling station infrastructure and the applicability of the new technology on the existing fleet; (c) fulfilling the power and range requirements of the long-distance road transport.

Download Full-text

Estimation of Carbon Dioxide Emissions from a Traditional Nutrient-Rich Cambodian Diet Food Production System Using Life Cycle Assessment

Sustainability ◽

10.3390/su13073660 ◽

2021 ◽

Vol 13 (7) ◽

pp. 3660

Author(s):

Rathna Hor ◽

Phanna Ly ◽

Agusta Samodra Putra ◽

Riaru Ishizaki ◽

Tofael Ahamed ◽

...

Keyword(s):

Carbon Dioxide ◽

Life Cycle Assessment ◽

Life Cycle ◽

Co2 Emissions ◽

Production System ◽

Agricultural Production ◽

Carbon Dioxide Emissions ◽

Food Production ◽

Carbon Dioxide Co2 ◽

Food Production System

Traditional Cambodian food has higher nutrient balances and is environmentally sustainable compared to conventional diets. However, there is a lack of knowledge and evidence on nutrient intake and the environmental greenness of traditional food at different age distributions. The relationship between nutritional intake and environmental impact can be evaluated using carbon dioxide (CO2) emissions from agricultural production based on life cycle assessment (LCA). The objective of this study was to estimate the CO2 equivalent (eq) emissions from the traditional Cambodian diet using LCA, starting at each agricultural production phase. A one-year food consumption scenario with the traditional diet was established. Five breakfast (BF1–5) and seven lunch and dinner (LD1–7) food sets were consumed at the same rate and compared using LCA. The results showed that BF1 and LD2 had the lowest and highest emissions (0.3 Mt CO2 eq/yr and 1.2 Mt CO2 eq/yr, respectively). The food calories, minerals, and vitamins met the recommended dietary allowance. The country’s existing food production system generates CO2 emissions of 9.7 Mt CO2 eq/yr, with the proposed system reducing these by 28.9% to 6.9 Mt CO2 eq/yr. The change in each food item could decrease emissions depending on the type and quantity of the food set, especially meat and milk consumption.

Download Full-text

Factors Affecting Transport Sector CO2 Emissions in Eastern European Countries: An LMDI Decomposition Analysis

Engineering Proceedings ◽

10.3390/engproc2021005025 ◽

2021 ◽

Vol 5 (1) ◽

pp. 25

Author(s):

Souhir Abbes

Keyword(s):

Co2 Emissions ◽

Decomposition Analysis ◽

European Countries ◽

Transport Systems ◽

Transport Sector ◽

Eastern European ◽

Factors Affecting ◽

Mode Of Transport ◽

Eastern European Countries ◽

Carbon Dioxide Co2

In this paper, we use the Logarithmic Mean Divisia Index (LMDI) to apply decomposition analysis on Carbon Dioxide (CO2) emissions from transport systems in seven Eastern European countries over the period between 2005 and 2015. The results show that “economic activity” is the main factor responsible for CO2 emissions in all the countries in our sample. The second factor causing increase in CO2 emissions is the “fuel mix” by type and mode of transport. Modal share and energy intensity affect the growth of CO2 emissions but in a less significant way. Finally, only the “population” and “emission coefficient” variables slowed the growth of these emissions in all the countries, except for Slovenia, where the population variable was found to be responsible for the increase in CO2 emissions. These results not only contribute to advancing the existing literature but also provide important policy recommendations.

Download Full-text

Distributional effects of carbon taxation in passenger transport with lump-sum offset: low income households, retirees and families would benefit in Germany

European Transport Research Review ◽

10.1186/s12544-020-00442-6 ◽

2020 ◽

Vol 12 (1) ◽

Author(s):

Christine Eisenmann ◽

Felix Steck ◽

Lars Hedemann ◽

Barbara Lenz ◽

Florian Koller

Keyword(s):

Low Income ◽

Carbon Tax ◽

Transport Sector ◽

Passenger Transport ◽

Data Set ◽

Distributional Effects ◽

Lump Sum ◽

Carbon Taxation ◽

Taxation Scheme ◽

Low Income Households

Abstract Background The introduction of a carbon tax on passenger transport is currently being discussed in Germany. Various stakeholders favour a consumption-based, revenue-neutral carbon tax with a uniform lump-sum offset for private households and a tax rate of 40 € per ton of CO2. Objective In this study, we examine the distributional effects of carbon taxation for the German passenger transport sector under the assumption of the proposed tax model. We discuss as to what extent which socioeconomic groups would be burdened and who might even benefit from carbon taxation. To answer these questions we use a uniquely modelled data set that encompasses all forms of passenger transport (i.e. in Germany and abroad) of the German resident population over 1 year. The national household travel survey Mobility in Germany 2017 is the basis of the microscopic data set. We derive annual CO2 emissions and carbon tax burdens for various population groups using the data on passenger transport, as well as specific emission factors. Results Results show that low income households, retirees, single parents and family households with two or more children would benefit from the proposed carbon taxation scheme due to below-average emissions per person; in contrast, working age households without children and car owners with heavy car use would be burdened. Our results are of particular relevance to transport researchers, transport politicians and decision makers as a basis for designing, developing and introducing a carbon taxation scheme.

Download Full-text