EEA: European Environment Agency

Transcription

1 Economic policy instruments for water activities at EEA Mikael Skou Andersen EEA: The EEA aims to support sustainable development and to help achieve significant and measurable improvement in Europe s environment through the provision of timely, targeted, relevant and reliable information to policy making agents and the public EEA is an independent EU institution i i with 32 member countries incl. Turkey, Switzerland and Norway Executive director: Prof. Jacqueline McGlade Member countries Collaborating countries 200 staff in Copenhagen headquarters and 6 Topic Centres with wide network throughout Europe 1

2 Ecotaxes a good idea? EU UK FI SW PO NL LU IT IR F ES GR GE DK BE A agree strongly agree disagree disagree strongly per cent Eurobarometer Ecotaxes and economic growth EU UK FI SW PO NL LU IT IR F ES GR GE DK BE A yes, even if they slow economic growth yes, even if they slow significantly only if no slowing per cent Eurobarometer 2

3 Water use: GDP/capita and price? m3 water per capita Fyrom BG RO TR LT LV HR MT PT HU SK EE CZ PL CY IT UK ES FR SE FI DK AT SI EL DE BE IE NL CH GDP per capita Environmentallyrelated taxes today are defined by OECD (2003) as any compulsory, unrequited payment to general government levied on taxbases deemed to be of particular environmental relevance categories used by Eurostat Energy / Transport / Pollution / Resources 3

4 Environmental tax revenues of GDP 2009 Environmental tax revenues as a share of total revenues from taxes and social contributions 4

5 European semester Annual Growth Survey 2011 guidance indirect taxes more growth friendly than direct taxes and broadening tax bases is preferable to increasing tax rates unjustified subsidies, e.g. environmentally harmful subsidies should be eliminated Euro Plus Pact (March): tax coordination New framework of integrated economic policy integration within EU Benefits of broader tax base Taxes on labour are distortionary Environmentallyrelated taxes reflecting external costs are not distortionary Revenue recycling: neutral tax shift will benefit the economy (and the environment) 5

6 Ireland: absence of water charging consumer baskets: per cent (Ireland) water sewerage refuse electricity gas solid fuels heat transp fuels Ireland per cent (euroarea) water sewerage refuse electricity gas solid fuels heat transp fuels Euroarea The potential for new environmentallyrelated taxes in Italy based on experiences in other European countries: Increase taxes on electricity and gas for households and business Increase taxes on mineral oils and consider tax on coal Increase vehicle taxation to average of EU15 Introduce eurovignette for heavygoods vehicles Adjust rates of waste and air pollution taxes to higher levels Introduce taxes on packaging, pesticides and water pollution New national tax on water abstraction Reform environmentally damaging subsidies: Company car subsidies to be limited Phase out exemptions for energy taxes etc. Abolish reduced rates and normalise VAT for gas & electricity Result: new ratio of 1011 % of total taxes 6

7 Fullcost pricing EU Water Framework Directive art. 9 stipulates introduction ti of fullcost water charges The principle of recovery of the costs of water services, including environmental and resource costs associated with damage or negative impact on the aquatic environment should be taken into account in accordance with, in particular, the polluterpays principle An economic analysis of water services based on long term forecasts of supply and demand for water in the river basin district will be necessary for this purpose Member states shall ensure by 2010 that waterpricing policies provide adequate incentives for users to use water resources efficiently General definitions (OECD, Eurostat) Tax: unrequited payment, for which no service is provided User charge: payment for a service to users (water supply + discharge) DE: Lenkungsabgabe (French: redevance) Levy where tax rates are linked and earmarked to predefined purposes specific public good is provided 7

8 Subsidies support excess demand Water pipe leakage rates 8

9 Water abstraction tax: reduced leakage? Resource rent Ground water abstraction taxes often small and not significant for leakage Country Domestic Industry Agriculture euro/m3 Denmark If metered water less than 90% of abstraction, waterworks liable to pay Belgium Czech Rep 0.09 Germany Hungary Netherland 0.20 Poland Denmark 0.67 Emission taxation: COD and P 9

10 Strategic decision: how much WWTP capacity? Capacity (IE/capita) Denmark France Netherlands Denmark Endofpipe approach WWTP operated by local authorities Huge additional capacity for industry Netherlands Prevention approach Levies for discharges caused industry to reduce at source Less wastewater, big savings! Fe+ optimisation with Ptax (15 /kgp) and incineration tax for sludge Economically most effective 0.3 mgp/l Mandatory emission value 1.5 mgp/l 10

11 How and where to institute payments for efficient management? Wastewater treatment plant (WWTP) Abstraction Sewerage system Groundwater Waste water services % of GDP Share of GDP, %

12 Where environmental fiscal reform can make a difference Health Minerals SO 2 Waste Packa ging Carbon energy Biodiversity Climate Tax system significant effect some effect Thank you for your attention 12