Tax incentives to promote green electricity: An overview of EU-27 countries

Muñoz-Repiso, José Manuel Cansino; Gil-Delgado, María del Pópulo Pablo-Romero; Román, Rocío; Ovando, Rocío Yñiguez

doi:10.1016/j.enpol.2010.05.055

Cited by 121 publications

(66 citation statements)

References 19 publications

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“…Although there continues to be improvements in efficiency, in general the values are lower than for the natural approach. In this case, the highest values, at the beginning and the end of the period, are those of the block of countries which have been longer at the heart of the EU-28 and, therefore, as has been seen in the Introduction, have had policies oriented towards slowing down climate change and improving energy efficiency for longer (Cansino et al, 2010(Cansino et al, , 2011Capros et al, 2011;Carvalho, 2012). albeit with a higher dispersion.…”

Section: Malmquist Indexmentioning

confidence: 95%

An analysis of Spain's global and environmental efficiency from a European Union perspective

et al. 2017

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Section: Malmquist Indexmentioning

confidence: 95%

An analysis of Spain's global and environmental efficiency from a European Union perspective

et al. 2017

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“…Cansino et al 2010;Markandya et al 2009;National Treasury 2010:43-49, 2013. While some of these refer to a single sector or to the whole economy, others take an enterprise point of view and employ different techniques for project appraisal such as cost-based approaches, discounted cash flow (DCF) models, which calculate the present value of an investment by discounting future cash flows at an appropriate discount rate, or real options analyses and simulations.…”

Section: Background: Financial Evaluation On Imperfect Markets Under mentioning

confidence: 99%

Unintended possible consequences of fuel input taxes for individual investments in greenhouse gas mitigation technologies and the resulting emissions

Klingelhöfer

2017

SAJEMS

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Background: South Africa is planning to introduce a carbon tax as a Pigouvian measure for the reduction of greenhouse gas emissions, one of the tax bases designed as a fuel input tax. In this form, it is supposed to incentivise users to reduce and/or substitute fossil fuels, leading to a reduction of CO2 emissions.Aim: This article examines how such a carbon tax regime may affect the individual willingness to invest in greenhouse gas mitigation technologies.Setting: Mathematical derivation, using methods of linear programming, duality theory and sensitivity analysis.Methods: By employing a two-step evaluation approach, it allows to identify the factors determining the maximum price an individual investor would pay for such an investment, given the conditions of imperfect markets.Results: This price ceiling depends on the (corrected) net present values of the payments and on the interdependencies arising from changes in the optimal investment and production programmes. Although the well-established results of environmental economics usually can be confirmed for a single investment, increasing carbon taxes may entail sometimes contradictory and unexpected consequences for individual investments in greenhouse gas mitigation technologies and the resulting emissions. Under certain circumstances, they may discourage such investments and, when still undertaken, even lead to higher emissions. However, these results can be interpreted in an economically comprehensible manner.Conclusion: Under the usually given conditions of imperfect markets, the impact of a carbon tax regime on individual investment decisions to mitigate greenhouse gas emissions is not as straight forward as under the usually assumed, but unrealistically simplifying perfect market conditions. To avoid undesired and discouraging effects, policy makers cannot make solitary decisions, but have to take interdependencies on the addressee´s side into account. The individual investor´s price ceiling for such an investment in imperfect markets can be interpreted as a sum of (partially corrected) net present values, which themselves are a generalisation of the net present values known from perfect markets

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“…As stated Cansino et al (2010), in promoting green electricity, there are probably no "perfect" fiscal incentives that should be widely applied in all situations and countries. These incentives are applied simultaneously with other promotion's measures, specially quota obligations and price regulation.…”

Section: Tax Incentives To Promote Green Electricitymentioning

confidence: 99%

“…Other Taxes Cansino et al (2010) Belgium, Greece and Spain allow the deduction of a percentage of the investment made in systems that generate green electricity from the net tax base in the corporate tax. In the first two cases, the exemption is allowed by the company that has spent the funds in building the systems that generate green electricity.…”

Section: CCLmentioning

confidence: 99%