From shadow to green: Linking environmental fiscal reforms and the informal economy

Closing the emission price gap

“…The latter would not lead to the macro-economic efficiency enhancements resulting from lowering pre-existing taxes (Goulder, 2013). Recent studies have further shown that, by broadening the tax base, a price on GHG emissions increases the overall efficiency of the tax system in economies with a large informal sector, which is affected by a GHG price but would otherwise not be subject to taxation (Markandya et al, 2013). The above effects could thus, at least in the short term, foster economic growth by means of more efficient use of economic resources.…”

Could Resource Rents Finance Universal Access to Infrastructure? A First Exploration of Needs and Rents

“…Hence, resource rent taxation is an attractive option from a theoretical perspective. 1 In addition, resource taxes are less prone to tax evasion (Markandya et al, 2013).…”

Towards a comprehensive approach to climate policy, sustainable infrastructure, and finance

“…First, in most countries, revenues from national carbon pricing schemes, in line with limiting global temperature increase to well below 2°C, would be sufficient to provide universal access to key infrastructure services and thus help to achieve Sustainable Development Goals (Jakob et al, 2016) (see Figure 4). Second, carbon pricing may be a lever to increase the economic efficiency of the tax system, especially in economies subject to harmful tax competition (Franks et al, 2015) and economies with large informal sectors, as evading taxes on fossil fuels is less likely than evading sales or income taxes (Markandya et al, 2013;Liu, 2013). By substituting income or value added taxes with green fiscal reforms, adverse effects on the poorest members of society can be avoided.…”