IMPACT OF ENVIRONMENTAL TAXES ON SUSTAINABLE ENERGY DEVELOPMENT IN BALTIC STATES, CZECH REPUBLIC AND SLOVAKIA

Economics

Name and surname of author:

Dalia Štreimikienė

Year:

2015

Volume:

18

Issue:

4

Keywords:

Environmental taxes, sustainable energy development, indicators, Baltic States, Czech Republic, Slovakia

JEL clasification:

E62 - Fiscal Policy, Q01 - Sustainable Development, Q43 - Energy and the Macroeconomy, Q56 - Environment and Development - Environment and Trade - Sustainability - Environmental Accounts and Accounting - Environmental Equity - Population Growth

DOI (& full text):

http://dx.doi.org/10.15240/tul/001/2015-4-001

Anotation:

Environmental taxes have direct impact on sustainable energy development as energy production and consumption is the major source of GHG and classical pollutants emissions. There are number of EU member states which are using environmental pollution taxes as the main economic instrument of atmospheric air pollution reduction. The energy sector is the main source of atmospheric pollution therefore environmental taxes should have direct impact on sustainable energy development as these taxes create incentives to reduce consumption of fossil fuels and to switch to renewables and cleaner fossil fuels such as natural gas. The comparative study of environmental taxes and indicators of sustainable energy sector development in Baltics and Czech Republic and Slovakia was performed to assess what role environmental taxes are playing in achieving sustainable energy development in selected new EU member states. Analysis of environmental taxes in three Baltic States and Czech Republic indicated quite different energy and pollution tax rates as well as quite large differences in the share of environmental tax revenues as percentages of GDP in these countries. Estonia distinguishes with the best results in greening environmental tax system and one of the best results in achieving sustainable energy development targets. Latvia has one of the lowest share of environmental taxes as percentage of GDP and has very high shares of renewables in electricity generation and in ﬁnal energy consumption however it is more related with favourable climate conditions and well developed hydro power plants.

Environmental taxes have direct impact on sustainable energy development as energy production and consumption is the major source of GHG and classical pollutants emissions. There are number of EU member states which are using environmental pollution taxes as the main economic instrument of atmospheric air pollution reduction. The energy sector is the main source of atmospheric pollution therefore environmental taxes should have direct impact on sustainable energy development as these taxes create incentives to reduce consumption of fossil fuels and to switch to renewables and cleaner fossil fuels such as natural gas. The comparative study of environmental taxes and indicators of sustainable energy sector development in Baltics and Czech Republic and Slovakia was performed to assess what role environmental taxes are playing in achieving sustainable energy development in selected new EU member states.
Analysis of environmental taxes in three Baltic States and Czech Republic indicated quite different energy and pollution tax rates as well as quite large differences in the share of environmental tax revenues as percentages of GDP in these countries. Estonia distinguishes with the best results in greening environmental tax system and one of the best results in achieving sustainable energy development targets. Latvia has one of the lowest share of environmental taxes as percentage of GDP and has very high shares of renewables in electricity generation and in ﬁnal energy consumption however it is more related with favourable climate conditions and well developed hydro power plants.

Section:

Economics