Pricing instruments encourage broad-based action to reduce environmental damage at least cost and should be a central pillar of green growth policy. They provide incentives for further efficiency gains, green investment and innovation and shifts in consumption patterns. Increased or more effective use of environmentally related taxes can drive growth-oriented reform by shifting the tax burden away from more distortive taxes, e.g. on corporate or personal income, and contribute to fiscal consolidation.
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taxing energy use: report and data visualisation
Emissions from energy use cause environmental and health damages and they also contribute to climate change. By charging for these damages, taxes on energy use can reduce excessive emissions, while raising revenue that can be used to fund vital government services.
This report assesses the magnitude and coverage of taxes on energy use - carbon taxes and other specific taxes on energy use - in 2015, across different countries and selected country groups, six sectors and five main fuel groups. It also considers change in effective tax rates on energy use between 2012 and 2015. The analysis is based on the OECD’s Taxing Energy Use database, a unique dataset to compare coverage and magnitude of specific taxes on energy use across 42 OECD and G20 economies, which together represent approximately 80% of global energy use and CO2-emissions associated with energy use.