This presentation was made by Nils Axel Braathen, OECD, at the Paris Collaborative on Green Budgeting Experts Workshop held at the OECD, Paris, on 20 June 2018

1. GREENING PUBLIC REVENUE RAISING
Nils Axel Braathen,
Principal Administrator, OECD’s Environment Directorate
Presentation at experts’ workshop on Green Budgeting
Paris, 20.06.18

2. Greening public revenue raising
Introduce new environmentally related taxes, fees and
charges …
Taxes on CO2 and other greenhouse gases
Hydrofluorocarbons (HFCs)
Perfluorocarbons (PFCs)
Sulphur hexafluoride (SF6)
Taxes on local air pollutants
NOx, see “The Swedish Tax on Nitrogen Oxide Emissions”, OECD
Environment Policy paper No. 2
Taxes related to waste management
Taxes on hazardous chemicals
Taxes, fees and charges related to biodiversity protection
… and align the environmentally related taxes, fees and
charges closer to the environmental externalities.
Link the tax rates closer to estimates of marginal damages
Remove unwarranted exemptions 2

3. Greening public revenue raising
Introduce environmentally motivated tax reductions
This in very much a second-best approach, at best
It does not raise revenue, and can be very costly
The environmental impacts are questionable, due to free-riders, etc.
“Tax Preferences for Environmental Goals: Use, Limitations and Preferred Practices”,
OECD Environment Working Papers, No. 71.
Remove unintended negative environmental impacts of provisions in
the broader tax system
Income tax treatment of company car fringe benefits and commuting
expenses
“Personal Tax Treatment of Company Cars and Commuting Expenses: Estimating
the Fiscal and Environmental Costs”, OECD Taxation Working Papers, No. 20
“Environmental and Related Social Costs of the Tax Treatment of Company Cars
and Commuting Expenses”, OECD Environment Working Papers, No. 70
Capital depreciation rules
“Unintended technology-bias in corporate income taxation – the case of electricity
generation in the low-carbon transition”, forthcoming as an OECD Taxation Working
Paper
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