Ecotax

The term eco-tax a number of tax measures is referred to, which were resolved with the "Law for the entry of the ecological tax reform." The term was coined by opponents of the law in 1999 and is now referred to in common parlance especially taxes which are imposed on the consumption of energy. Under the Act, no new tax was, apart from the electricity tax, introduced, but there were existing tax laws redesigned so that they unfold steering effect for the purposes of environmental protection, on the one hand by increasing the amount of taxes on energy consumption and environmentally damaging behavior, on the other through incentives for efficient technologies.

The concept was developed in the early 1980s by Swiss economist Hans Christoph Binswanger (Foundation ecological tax reform) and combines two approaches:

• Taxation of the scarce resource of energy with the aim of increasing the efficiency of energy use,
• Broadening of the basis for the financing of social security.

• 3.1 Steering effect
• 3.2 Earmarking
• 3.3 efficiency
• 3.4 Social justice

Economic considerations

The eco-tax arises from the following considerations:

• The market prices of fossil fuels such as oil are not permanently stagnate because the natural reserves of fossil fuels are limited and because of peak oil reached soon or is already exceeded.
• In the long term and sustainable is today the mineral oil for cheap, future mineral oil too expensive. The mineral oil should anticipate this increase in the price of mineral oil to smooth it and for the market to adjust to a higher price level early. Thus, the operation of more economical vehicles to be relatively cheaper, which in turn should stimulate the development of technology in this field. However, it can be internalized as induced by environmental damage external costs.

Ecological tax reform in Germany

Basic idea

The ecological tax reform was based on the criticism that the current tax law, not or only insufficiently consider and unintentionally harmful ecological effects calls forth ecological criteria of economic activity. An example of this was the orientation of the motor vehicle tax only on the size of engine. Meanwhile, the road tax is based mainly on how well the vehicle in its exhaust filters. Like other economic instruments also has the use of the tax law for environmental protection advantage over regulatory measures ( legal obligations ) that the individual remains free in its decision, a lower control effort caused and eliminates the problem of control deficiencies. In the foreground of an ecological tax system is the hypothesis of the "double dividend". Among the internalisation of external effects in the form of pollution on the one hand and the generation of tax revenues is to understand the other. A taxing environmentally harmful conduct creates therefore no additional loads.

Eco-tax laws in Germany

In Germany since 1999 multiple laws with emphasis on the " greening of the tax law " was adopted.

• The Act on the introduction of the ecological tax reform on 24 March 1999 (Federal Law Gazette I, p 378) was introduced as a new excise tax a current control. Electricity from renewable energy sources is exempt, provided that the energy is drawn from networks that are fed exclusively with such energy sources. For large industrial consumers, the tax was reduced in the interest of its international competitiveness. The mineral oil was graded according to ecological criteria; doing certain uses were favored, others more expensive, such as leaded or sulfur-rich fuels. From 1999 to 2003 the tax was increased in steps of 6 Pf several times. Exempt from the increase in petroleum are manufacturing firms. Current receive these businesses at a 40% reduced rate.
• The Act on the continuation of the ecological tax reform of 16 December 1999 (Federal Law Gazette I p 2432 ) brought a temporary mineral oil tax exemption for gas and steam turbine power plants with high efficiency and some corrections of the first law, with which undesired effects should be avoided.
• As a third step, the Law on the further development of ecological tax reform of 23 December 2002 (Federal Law Gazette I p 4602 ) has been adopted to another - contained increase in petroleum - for a differentiated according to the environmental impact.
• Currently there is a change in the motor vehicle tax law to the debate (keyword: dust ).

Development of tax revenues

The revenues of the German eco-tax flow into the general budget. A earmarking ( eg for insurance or the promotion of renewable energies) does not exist.

Exemption of air transport

Although airplanes cause high specific environmental impacts from certain points, the air transport of the environmental tax is exempt. It is for three reasons:

• Air traffic supposedly self financed all travel costs.
• It should be prevented that a locational disadvantage for German airlines arises.
• International agreements must be respected.

The opponents of the environmental tax exempt aviation see here in addition to the environmental impact a competitive advantage for the budget airlines over bus and train.

Impact in border areas

In border regions, motorists escape the eco-tax in that they have fuel tourism in neighboring countries. The result is that there gas stations were closed on the German side. For this reason has been discussed to introduce special schemes in border areas, but failed. On the other hand, live station operator generally nationwide less and less of their fuel Commissions: The share of revenue decreased from 26 % in 1999 to around 20 % in 2007. This shop business is now the main source of revenue ( 42 % in 1999 to 55.6 % in 2007). Right here near the border benefit German gas stations regardless of higher gross price for fuels of their position, especially in nearby countries with more restrictive shop opening times and public holidays in the neighboring country, which are working days in Germany. They also receive supply of business customers by the alleged slow, complicated and partly foreign-language EU VAT refund procedure abroad. In Germany taxable business customers in transit therefore compare - in favor of Germany - the German net price with the foreign gross price and recharge as a result sometimes deliberately shortly before or after the border on the German side. This allows the remaining gas stations near the border even often a price premium in the amount of the difference to the foreign gross price. Sample: On 21 July 2008 demanded Shell gas stations in Trier in the Eurener road and at St. Barbara's shores and in Konz in the street, according to Bruno portal Clever- tanken.de 1,629 euros per liter of super gasoline. However, the national average was on that day at € 1.492 / l, ie 13.7 ct / l lower, and the average super price in Luxembourg only 8-14 km away in the 29th calendar week 2008 1.37 € / l, so 25.9 ct / l or 15.9 % lower. The net price on the German side ( tax deducted ) but was as favorable as the gross price in Luxembourg at € 1.369 / l

Constitutional Judicial Review

On 20 April 2004, the first Senate of the Federal Constitutional Court stated the legality of individual exemptions of the environmental tax. Forwarders and cold store operators had challenged provisions of the Electricity Tax Act and the Mineral Oil Tax Law constitutional complaints and failed it.

Problems of the German energy taxation

Steering effect

According to critics, a significant steering effect towards the desired investment in new, clean technologies has so far been only in narrowly defined areas, for example in the form of an increased demand for fuel-efficient cars, the far-reaching exemptions for energy-intensive industries maintain this prior cost increases have However, no incentive for investment in modernization or technical development.

Earmarking

A further problem is that the tax was politically motivated not alone with their ecological steering effect, but a connection with the legislated reduction of social security contributions has been made ​​. In addition to general tax system concerns against such earmarking argues against this connection, the fact that tax revenues as a result of the ecological tax reform decreases when the desired effect is achieved, while the financial needs of the social insurance tends to increase, and therefore can not be permanently covered by this part of the tax revenue.

Efficiency

Efficiency in terms of environmental economics is given if all pollutant sources, the additional costs of preventing one additional unit of the pollutant ( marginal abatement costs) are exactly the same. This is only the case if the tax rate for all sources of pollution is chosen uniformly. Then cause shifts between two sources of pollution no more welfare gains. In the standard price approach by Baumol this is assumed as given. A social optimum in the sense of the internalisation of external effects (cf. Pigou tax, external effect) is not sought. Rather, only a specific environmental objective to be achieved.

In reality, the same substances are taxed differently in different use in certain cases. For example, enjoys the manufacturing industry and farmers and foresters tax reductions or light fuel oil and diesel - in fact the same thing - are subject to different tax rates. This leads to the inefficiency of the eco-tax.

Considering the ecological accuracy of a tax solution (such as the eco-tax ), so it may happen that an ill-chosen tax rate leads to deviations from the environmental objective. Therefore, a levy solution is less accurate than the emission rights trading, ie a certificate solution, because in this environment, the target can be directly influenced.

Social Justice

Indirect taxes can act regressive, that is, the proportion of household income have to spend the people with small incomes for such taxes is greater than in those with high incomes may. An ecological tax system is therefore sometimes perceived as unjust. The graduated tax effect would be offset by a subsidy for energy procurement services, but what red tape arrangement, and which reduces the desired steering effect in the relevant age group. Alternatively, people with low incomes are subsidized independent of the energy consumption by progressive income taxes or higher social transfers ( such as unemployment benefits ). A load factor of production energy and relief of the production factor labor also means that the economic pressure for substitution of jobs through the use of capital and energy is reduced.

Environmental tax as Entropiesteuer

Environmental tax represents taxes on goods such as gasoline, diesel, kerosene, etc. These are fuels whose consumption pollutes the environment. If - as in the case of sales tax (called VAT) - ensured by the possibility to deduct that only the final consumer of energy bears the tax burden, then it is at the eco-tax to a tax on energy consumption. Energy consumption corresponds to an increase of entropy. With it, an energy consumer loaded shared with the community environment. In the eco-tax so it is a " Entropiesteuer ", is taxed at the to the cause environmental pollution.