European Environment Agency (EEA)

EEA has published many reports on Environmental Tax Reform (ETR, or the shift in taxation from labour to resources). Below is a selection of relevant quotes:

‘The polluter pays principle can stimulate a greening of the economy through taxes that allow market prices to reflect full costs of production, consumption and wastes. This can be achieved via greater use of fiscal reform which in addition to removing harmful subsidies, replaces distortionary taxes on economic ‘goods’ such as labour and capital, with more efficient taxes on economic ‘bads’, such as pollution and inefficient resource use.’

From: European Environment Agency (2010) The European environment – State and Outlook 2010. Synthesis. EEA Copenhagen.

'ETR can increase real incomes for all groups and hence encourage employment, supporting the case for future ETR in the EU'

From: European Environment Agency (2012) Environmental tax reform in Europe:implications for income distribution. Technical report No 16/2011.

'Studies have demonstrated that environmental taxes can achieve environmental objectives at the same time as raising revenues. Modelling shows that they also have a less negative effect on GDP compared to other types of taxes, such as direct taxes, for example income tax, or indirect taxes such as value added tax. This crucial feature of environmental taxes means countries could use them to support either fiscal consolidation or to reduce other taxes.'

From: European Environment Agency (2013) Green fiscal reform can create jobs and stimulate innovation across the EU.

'Environmental fiscal reform can deliver five dividends:
1) increased resource productivity and eco‐innovation;
2) increased employment;
3) improved health of environments and people;
4) a more efficient tax system;
5) sharing the financial burdens of an ageing population also according to consumption.'