Introduction ; Part I The Use of Economic Instruments in Environmental Policy in the Nordic and Baltic Countries; 1. Main developments in EU environmental policy legislation and implications for environ mental policy instruments in the Nordic and Baltic countries; 1.1 Introduction; 1.2 Economic instruments linked to energy and air emissions; 1.3 Economic instruments used in water policy - water quantity as well as water quality issues; 1.4 Economic instruments addressing waste issues and the different types of waste.

The Working Group on Environment and Economy of the Nordic Council of Ministers publishes regular reports on the use of economic instruments in Nordic environmental policy. This report is part of that series and has two parts. Part 1 presents an overview of the use of economic instruments in Nordic environmental policy, with a focus on policy changes over the period 2010-2013. Part 2 develops a framework for assessing the political possibilities of reforming environmentally harmful subsidies, and applies this framework to three cases relevant in the Nordic context. The report was prepared by Copenhagen Economics, GreenStream Network and Environice. The authors of the report are Hrafnhildur Bragadóttir, Carl von Utfall Danielsson, Roland Magnusson, Sampo Seppänen, Amanda Stefansdotter and David Sundén.

This book provides a comprehensive discussion on the effectiveness of environmentally related taxes and their potential for wider use.

When taxes are introduced on carbon and energy, and the revenue is used to reduce other taxes, will a positive effect be achieved both for the environment and for the economy? In 1990 Finland was the first country to introduce a tax on CO2. Later, Sweden, Denmark, Netherlands, Slovenia, Germany and the UK followed suit with tax reforms that shifted taxation from labour to carbon and energy. Over the years, CO2 and energy taxes have gradually been raised, so that in Europe taxes of more than 25 billion Euros a year have been shifted. This book examines carbon-energy taxation in detail and looks at tax shifting programmes for lowering other taxes. It offers extensive analysis on the basis of historical data and seeks to answer important questions for policy-making, such as: What was the impact of tax shifting for economic performance and competitiveness? By how much were emissions of CO2 reduced? Could energy-intensive industries cut further down on their fuel demand or did they loose market shares? To what extent was there 'leakage' from Europe, so that production and CO2 emissions were shifted to other countries or regions without CO2-abatement policy? The use of unique and original data, including sector-specific energy prices and taxes, as well as the use of advanced statistical techniques, such as co-integration analysis and panel-regression techniques along with the time-series estimated macro-economic model E3ME, make this a truly comprehensive volume. On the basis of the lessons learned in Europe, this volume indicates how carbon-energy taxation could usefully be combined with emissions trading, and discusses implications for future international climate policy, including how the IPCC recommendations for a gradual escalation in carbon price could be accomplished while preventing carbon leakage.

This report investigates the potential for increased use of economic instruments, not the least taxes and charges, in chemcials policy. It provides a conceptual discussion of the role of different market-based instruments in controlling pollution based on chemicals production and use, and outlines a comprehensive overview and analysis of the European experiences of taxes and charges in chemicals policy during the last decades. A final chapter evaluates a set of carefully selected economic instruments targeted at specific chemical compounds and products. The cases have been chosen so as to illustrate different types of challenges in relying more extensively on economic instruments in chemicals policy, and they include the use of: (a) different types of two-stroke oils; (b) the substance nonylphenol (NP) and its ethoxylates (NPEs), which break down into NPs; and (c) ethylene glycol. The report has been commissioned by the Working Group on Environment and Economics under the Nordic Council of Ministers.

The Nordic Council of Ministers publishes regular overview reports on the use of economic instruments in Nordic environmental policy. In this report, Part I presents an overview of the use of economic instruments with the main focus on changes during the years 2006 - 2009. Part II gives a brief overview of mixes of policy instruments (also other than economic instruments) and presents two case studies. There are generally few changes in the use of economic instruments since 2006, except for the introduction of the emissions trading system, EU ETS, and changes in vehicle registration tax systems to become more based on specific fuel use or CO2 emissions. In general, the tax systems could be made more effective and efficient by treating different sectors and fuels more equally.