Index ability to pay, notion of 20, 30, 178 liquid fuel supply chain 75 accelerated depreciation Low-emissions Technology measurement of 119 Development Fund 136 in India 120 Medicare scheme 155 provision of 118–20 Mineral Resources Rent (2012) write-off for wind-energy 179–80 installations 120 National Low-emissions Coal administration, of R&DTIs 121–5 Initiative 138 administrative costs, of tax expenditure pre-2008 cleantech programmes 135 programmes 42–4 Productivity Commission 62 after-tax benefit 214 Product Stewardship for Oil alternative energy, sources of 60 Program 172 Aquatic Resources Trust Fund 171 Renewable Energy Demonstration Asprey Taxation Review Committee 204 Program 138 atmospheric pollutants 61 ‘return-to-budget-surplus’ pledge 74 AusAid 187 Solar Cities project 136 Australia Sustainable Geoscience Australia benefits-in-kind for taxation Initiative 138 purposes 203–5 Tax Expenditures Statements 215 ‘big-stick’ legislative agenda 94 taxing framework, mechanics of Bureau of Resources and Energy 206–8 Economics (BREE) 74–5 Australian National Audit Office Button Car Plan 209 (ANAO) 135, 137 Carbon Capture and Storage Australian Taxation Office (ATO) 223, Flagships programme 138 225 75 car fringe benefits tax (FBT) regime Balanced Budget and Emergency Deficit see car fringe benefits tax Control Act (1985), US see (FBT) regime (Australia) Gramm-Rudman-Holdings Act climate change programmes 136 (GRH), US Ethanol Production Grants (EPG) barriers to innovation 92–5 Program 74–6 ‘valley of death’ effect 98 experience in using direct Base Erosion and Profit Shifting (BEPS) expenditure programmes 134 Project 129 FBT legislation 209–11 Action Recommendation 15 of 129 Financial Review 74 battery storage technologies, emergence future of tax system in 220 of 263 Garnaut Climate Change Review benchmark tax base 11 (2008) 220–21 definition of 14–15 Greenhouse Gas Abatement first step of 12–16 Program 136–7 function of 15 Greenhouse Office 135

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identification of 12–23 post-1994 changes 223–7 normative 13 post-May 2011 changes 227–30 second level of 16–17 proposals to reform SFM third level of 17–22 concessions 216–20 benefits-in-kind for taxation 203–5 environmental basis of 220–21 ‘benefits principle’ of taxation 171 Ralph Committee’s Review of biofuels blending mandate (US) 68 Business Taxation 216–17 biofuel subsidies 67, 74–6 responses to valuation of 232–3 bio-mimicry 84 statutory formula method 228 biotechnology 84, 103 statutory rates for cars 219 bonus-malus schemes, implementation subsidy on congestion, noise and of 77 accidents ‘boom-bust’ cycle of development 122 effects of 221–3 Bradbury, David 230–31 restructuring of 223 British Broadcasting Commission (BBC) carbon-abatement schemes, costs of 62 154 carbon capture and storage 84, 134, 138, Brittan, Samuel 161, 163 191 Brown, Gordon 180 Carbon Capture and Storage Flagships Budget Enforcement Act (1990), US 164 programme (Australia) 138 budgetary costs, of tax expenditures 257 carbon dioxide (CO2) emissions 2, 166, benchmarks used in measuring 41–2 242 legislative scrutiny of 25 carbon emissions 1–2, 50, 59, 86, 187, limitations associated with working 195, 221, 265 out 26 carbon pollution 69, 220 measurement of 24–7 methods of reducing 62 spending programmes 33 carbon pricing 55, 62, 97, 144 task of estimating 26 beneficiaries of 81 Bush, George H.W. 55, 164, 255 legislation, enactment of 66 Button Car Plan 209 mechanisms for 64 carbon tax 21, 62, 75, 77, 81, 159–60, Cain, Alexandra 226 230 cap-and- schemes 62, 77 ‘car–bon tax’ on cars 240 capital allowance 116 Carbon Trust 117 benefits of 116 chaebols 97 limitations of 117 circular economy 176 capital-intensive firms 133 clean energy 123 car fringe benefits tax (FBT) regime Clean Energy Initiative 134 (Australia) 196 generation of 119 16 July 2013 surprise announcement innovation programmes 134–5 230–32 investment in 195 Bracks Review on 221 subsidies on 67 criticisms of inequities fostered by clean technologies (cleantech) 80 the concession 212–16 approach to financing R&D in 134 effectiveness of 218 capital investments into 90 employer’s liability in 227 categories of 84 evaluation of 233–4 ‘current renewables’ 85–6 Goods and Services Tax (GST) 227 development of a sustainable market Henry Tax Review Panel 221, 228 for 133 liability of 218 direct expenditure programmes 132 March Corporate Rally 218 effectiveness of 134

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government support to investment effectiveness of 239 in 99 HMRC modelling of 240 implementation strategies of 80–81 evaluations of 237–40 demand-pull strategies 97–8 impact of 240 essential requirements for post-2002 reforms 236–7 97–100 pre-2001–02 schedule 235 supply-push strategies 98–100 taxable value of innovation process in 83–6, 93 car benefit 235 policy-instrument mix in 98 older company cars 237 strategies of 97–100 transformational role of 241 ‘valley of death’ effect 98 zero-carbon-emitting vehicles 237 investments in 85 competition between firms, distortion low-carbon of 39 power investment 85 congestion 172 technologies 90 Congressional Budget and Impoundment nature and scope of 83–6 Act (1974), US 251 origins of 84 Congressional Budget Office (CBO), Production (PTC) US 70 program 122 consumption, meaning of 14 in United Kingdom (UK) 137 consumption taxes 15, 42, 45, 168 see also renewable energy Copenhagen Economics 196–7, 208, cleantech innovation 83, 90, 93–4, 97–8, 214–15, 241 118, 137–8, 144 copyrights 126, 128, 169 Climate Action Plan 139 corporate loyalty 208 climate change 58, 80, 85, 87, 93, 97, corporate taxes 95–6, 109–11, 118, 124 149, 156 liabilities of 128 adaptation 85 cost-covering charges 170, 171–2 in Australia 136 crowding out effect 73–6, 79 economics of 97 Climate Change Agreements 51 damage taxes 172 Climate Change Levy (CCL) 51, 117, David, Paul 73 156 David Suzuki Foundation 242 climate-friendly technological change, ‘de minimis’ aid 58 incentives for 63 debt servicing 183 climate-related tax expenditures 55 decision-making 43, 95, 178 coal, taxes on 2 individual and corporate 214 Cole, Jonathan 132 deductible allowances 116 commercialisation of technologies 90 and tax credits 110–11 company car taxation (CCT) regime, tax expenditure instruments 111 Canada ‘deficit-neutral’ expenditure 164 David Suzuki Foundation 242 demand management schemes 172 reforms of 242–3 demand-pull strategies 97–8, 99 company car taxation (CCT) regime, EU economic cost of 97 influence of 241 Department of Commerce (US) 127 review of 241–2 deployment support, investment in 97, company car taxation (CCT) regime, UK 259 196, 203 diesel fuel 21 background to 234–40 ‘diesel-gate’ scandal 247 benefit-in-kind under 238 direct expenditure programmes ‘car–bon tax’ on cars 240 administrative costs of 42–4

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allocative efficiency of 23 to finance public expenditures Australia’s experience in using 134 183–6 concept of 23 as instrument of public finance 150 contributions to economics of limitations of 180 cleantech 132 Lindahl’s theory of 167 determination of 25 nature and scope of 150–60 economic equivalence of 22 need for 165 financial assistance by governments public support for 164 through 23 quantum of revenues 152 and fostering of innovative redistribution and social welfare 151 programmes 134–9 resurgence of 164 grants for basic research 132 revenue-neutral package 165 for high-risk projects 131 and strategy for implementing induced finance effect 132 environmental policy 177 operational efficiency of 23 strong earmarking 151, 152–5 pitfalls of 133–4 application of 154 public support mechanisms for feasibility of applying 154 130–39 implementation of 153 scrutiny of 27 tax packaging 159–60 tax expenditure and 22–3, 46 theoretical and legal basis for used by governments to target 166–70 industries 131 types of 151–2 Dutch Energy Investment Tax Allowance user charge 156 (EITA) 39, 72 weaker earmarking 151, 155–6 application of 155 earmarking of taxes 148–9 features of 155 benefits of 183 hypothecation of 155 categories of 170–77 econometric subsidy, effects of employee cost-covering charges 171–2 car benefits on externalities 222 partial coverage of an industry economic efficiency 22, 36, 56 sector to emission taxes benefits of 77 176–7 capacity of reducing 66 reparative taxes 172–5 notion of 32 systems 175–6 economic inefficiency 71 and context in which it is applied economic wealth 13 151–2 economies of scale 93, 103 debate on 177–88 , on tourism 171 case against 177–82 effective targeting, principle of 36–40, earmarking taxes to finance 79, 141 public expenditures eligible capital allowances (ECAs) 116 183–6 energy-saving technologies 117 extra-territorial dimension UK’s experience with 118 186–8 emissions-based company car differentiation between taxes and 203 charges 156–9 emissions taxes 171, 176–7 of environmental taxes 148, 165 Emissions Trading Scheme (ETS), under EU Law 169 European Union 63, 81, 220, 230 evolution in public finance 160–66 employee car tax subsidies 196, 214 extra-territorial dimension of 186–8 employee remuneration, treatment of features of 150 208, 217

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Hope Ashiabor - 9781788113908 Downloaded from Elgar Online at 09/26/2021 02:07:37AM via free access 274 Tax expenditures and environmental policy environmentally friendly technologies deductible allowances and tax 103 credits 110–11 subsidisation of 49 incentive base 103–4 environmentally harmful subsidies research and development (EHSs) 195, 199 capital allowances 116–18 elimination of 248 tax incentives 101–3 restructuring of 202 tax base 109–10 equity for evaluating tax policies 29 federal system 16, 251 horizontal 31 Federal U.S. tax code 255 limits of using tax expenditures to feed-in (FIT) schemes 68, 147, address 35 259–62 notion of 29 financial support, to industries 35, 130 tenets of logic and 31 financing environmental taxes 148 vertical 29–30 fiscal incentives 49, 80–81, 124, 148 ethanol industry fiscal opportunism 23–4 Australia’s Ethanol Production fiscal transparency 6, 12 Grants (EPG) Program 74–6 foreign direct investments 95 biofuel subsidies and 74–6 fossil fuels 2, 49, 55, 59–61, 66, 69, 85, ‘first-generation’ technology of 122, 133–4, 195, 240 ethanol 75 fossil fuel industry 66, 267 tax credits for ethanol production subsidies, phasing out of 81 69, 70 free ridership, issue of 32–3 EU Commission 129 fringe benefits EU Guidelines on State Aid for non-deductibility of 224 Environmental Protection, The 57 non-taxation of 204–5 European Commission 57–8, 197 notion of 208 European economies, competitiveness remuneration packages of of 58 employees 224 European Investment Bank 264 taxable value of 224 European Union (EU) see also car fringe benefits tax 20–20–20 policy 63 (FBT) regime (Australia) company car tax regime 241–2 Credits Scheme (Australia) 21 Emissions Trading Scheme (ETS) fuel tax relief, for low-income 63 households 61 renewables targets 63 Euro-tailpipe emission standards, for G20 Energy Experts Group 21 diesel and gasoline 51 Garnaut Climate Change Review (2008) e-waste levies 172 220–21 expenditure-based incentive regimes geothermal drilling programme 134 accelerated depreciation provisions global carbon emissions, growth of 86, 118–20 265 administration 121–5 Global Financial Crisis (2007–08) 260 bases for applying tax credits gold mining industry, on 111–14 40–41 carry forward/carry back provisions good tax system 199, 202, 214, 251 114–16 criterion of 35 categories of eligible expenses efficiency dimension of 214 104–9 non-neutral aspects of 36

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requirements of 35 income Goods and Services Tax (GST) 211 concept of 13, 15 changes in economic 13 post-1 July 2000 227 from gold mining operations 40–41 post-May 2011 227–30 Schanz-Haig–Simons (SHS) Government Accountability Office definition of 13 (GAO) 252 income-based incentive regimes 125–30 government financial assistance creation of intellectual property 125 programmes 16, 37 income from gold mining operations, tax government funds, method of paying exemption on 40–41 out 44 income tax Gramm-Rudman-Holdings Act (GRH), concessions on US 164 based on self-reporting 43 Greco, Tony 212, 227 eligibility for 43 green bonds, emergence and growth of elements of 16 264 for financing government activities green electricity 94, 262 164 green investments 66 normative 13–14 green vehicles 72 reductions on income earned from greenhouse gas abatement 75 exploiting intellectual Greenhouse Gas Abatement property 125 Program (Australia) 136 industrial innovation 89 greenhouse gas (GHG) emission 2, 85, industry research spending, effects of 243 R&D tax provisions on 82–3, 89 Gurria, Angel 2 inequities, of tax expenditure 229 inertia management, in tax expenditure health-related purposes, taxes for 184 programmes 40–42 Henry Tax Review (2010) 41, 182, 221, information asymmetry 71–3, 143 228 information technology 84, 93 Her Majesty’s Revenue and innovation economy 97 (HMRC) 71, 117 innovation, technology-induced 80 home mortgage interest deduction 30 benefits of 91 home ownership 28, 30 challenges regarding 82 horizontal equity, principle of 29, 31, cleantech innovation 137 202, 204, 212, 214, 246 in cleantech sector 83–6, 93 housing tax concessions 28 cycle of 82 for net social welfare 28 defined 86–7 owner-occupied 28 drivers of 88 tax deductions with tax credits 28 early adopters of 93 human resources, R&D expenditures on effects of R&D tax provisions on employee share schemes (ESSs) industry research spending 106–8 82–3, 89 human resources-oriented approach effects on economic costs of climate 108 policies 87 R&D regime alignment 106 of energy-related technologies 93 R&D wages 105–6 Garnaut Report on 81 re-labelling activities 108–9 impact of R&D tax incentives on tax codes 105 124 hypothecation of taxes 148, 154, 160–61, industrial innovation 89 166, 191 investment in R&D 82, 90

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linear model of 88–9 International Energy Agency 85 market failures and barriers to 92–5 international 129 market pull vs. product/technology blueprint for combatting 129 push 88 investment allowances 38, 116 niche markets of 93–4 investment spill overs, economic benefits outcome of the investment in 90 of 92 patented innovations 126 Iranian revolution (1978–9) 60 patterns of 87–90 Irish Department of Environment 179 in power generation sector 94 private sector, role of 81 job creation 69 ‘valley of death’ effect 98 Joint Committee on Taxation (US) 30, innovative output, definition of 89 44, 46 Institute of Chartered Accountants in reassessment of the tax expenditure Australia (ICAA) 210, 217 concept 56 instrument choice issue joint venture partnerships 103, 132 comparison of the effects economic efficiency 32 Kalimantan Forests and Climate effect on resource allocation Partnership 187 32–5 knowledge spill overs 92 equity 29 societal benefits of 93 horizontal equity 31 Kyoto Protocol (1998) 220 vertical equity 29–30 UK’s ratification of 234 in measurement of tax expenditures 27–8 role of policy design 35–44 lease rental payments 211 ease of administration 42–4 levy–benefit system 172 effective targeting 36–40 liability taxes 111, 172 managing inertia 40–42 Lieberman-Warner Climate Security Act transparency 36 (2008), US 186 integrated environmental and economic Lindahl, Eric 166 accounting 157 Lindahl taxes 166 intellectual property (IP) loss–carry forward measures exploitation of 125 effect of 114 income tax reductions on income tax credit and 114–15 earned from 125 low-carbon royalties or licensing fees related economy 246 to 126 technologies 83, 90, 117, 198 tax breaks for 125–30 intellectual property rights (IPRs) Manildra company (Australia) 74 after-tax returns from innovative March Corporate Rally 218 products 125 market competition 87 commercialisation of 125 market failures 50, 95 of private inventors 92 and barriers to innovation 92–5 protection of 92, 97 identification of 35, 90–91 Internal (US) 109, 143 knowledge spill overs 92 internalisation of external costs manifestations of 92 method to achieve 52 market incentives 66 Pigouvian theory of 52 market pull vs. product/technology push international competitors, acquisition of 88 54, 103

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Matthews v Chicory Marketing Board tax reforms 2–3 (Vic.) 157 Medicare scheme (Australia) 155 Patent and Trademark Office (US) 127 Mineral Resources Rent Tax (2012), patent box system 125–30 Australia 179–80 capacity to distort international Motor Vehicle Census (2011), Australia competitiveness 129 222 objectives of 126 motor vehicle tax, surcharge on 176 OECD/G20 formulated strategies Mulgan, Geoff 160 for addressing anomalies in multi-national corporations (MNCs) 96, 129 128–9 patented innovations 126 knock-on effects of 133 patents, registration of 128 R&D activity by 97 pay-as-you-go financing, concept of 164 munitions production, tax incentives to Pigouvian taxes 53, 56 boost 40 policy-instrument design evolution of 258–63 nanotechnology 84, 103 principles of 252 National Insurance Contributions (NICs) political capital 54, 243, 257 scheme, UK 155–6, 235–6 polluter pays principle (PPP) 2, 48, 79, National Low-emissions Coal Initiative 169, 192 (Australia) 138 application of 169 ‘nature–and–conservation–and– concept of 52 recreation’-type programmes 171 resource pricing principle and 171 net social welfare 28 role in addressing market failures 57 niche markets, of technology-induced tenets of 56 innovation 93–4 pollution control investment 165 non-profit organisations 39 pollution prevention, allocation of costs normative tax base 13 of 52 nuclear waste disposal, cost of 174 pollution-related deaths 203 pollution-related illnesses 202 oil embargo of 1973 59 power generation sector, innovation in 94 oil pollution tax 174 Power Purchase Agreements (PPAs) 132, on-budget subsidy, utility of 201, 245 263 operating expenditures 105 preferential tax treatment 54, 101, 108, Organisation for Economic Co-operation 125, 215 and Development (OECD) 14, PricewaterhouseCoopers 225, 229 57, 60, 62, 72, 85, 100, 102, 104, pricing instruments 50–53 110–11, 116, 124, 142, 145, 148, effectiveness of 51 150, 165, 167 Production Tax Credit (PTC) program, benchmark tax system 15 US on exemption from tax 41 ‘boom-bust’ cycle of development Frascati Manual 102–3 122 government regulations 52–3 in cleantech sector 122 innovation matrix 88 enactment of 121 public spending instruments 4 sunset clauses and 121–3 R&D expenditure 109, 113, 125, property rights 49, 125 127, 130 public accounting, application of 157 tax incentive scheme 115 public expenditure ‘Taxing Energy Use 2018’ report 1 distribution of 153 earmarking taxes to finance 183–6

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on R&D 90–100 support schemes for 259, 262 implementing support technologies for 55, 86 programmes 97–100 Renewable Energy Demonstration market failures and barriers to Program (Australia) 138 innovation 92–5 renewable energy industry 120, 122, 95–7 259–60 recycling of revenues to support 169 Renewable Energy Sources Act (2000), public finance Germany 259 earmarking of taxes in 160–66 renewable energy technologies 55, 136 fiscal centralisation of 163 deployment of 260 hypothecation of revenues in support to 134 160–61 rent seeking 65–7, 253 Lindahl taxes for 166 misallocation of resources resulting public trust and accountability 163 from 66 public spending, on socio-economic tax expenditure programmes 67 programmes 8 taxpayers 33 public support, for business research and reparative taxes 171, 172–5, 174 development 130–39 reporting system, of tax expenditure 41, direct funding support 131 45–6 grants for basic research 132 research and development (R&D) 89–90 research undertaken by public sector business-financed 131 research 132 capital allowances 116–18 Public Utilities Regulatory Policy Act cost incurred by firms 101 1978 (PURPA), US 259 effects of tax provisions on industry research spending 82–3 quota systems 259, 262–3 expenditure-based incentive regimes 101 Ralph Committee’s Review of Business expenditures against their Taxation 216–17 corporation tax liability 111 reassessment, of the tax expenditure financial cost of 104 44–5, 46, 56, 182, 190, 209 financing through venture capital rebound effect, phenomenon of 76–8, 79 investment 95 recycling schemes, subsidisation of 49 fiscal incentives to support 49 rehabilitation bond 174–5 funding of government-conducted remuneration 98 after-tax cash remuneration 216 globalised and footloose nature of from employment 213 95 taxation treatment of 204 grants for basic research 132 tax-induced incentives 215 income-based incentive regimes tax preferred forms of 214 125–30 renewable energy 85 knowledge generated through public deployment of 55 research 131 growth of 122 public expenditure on 90–100 Renewable Energy Bonus Scheme implementing support 68 programmes 97–100 Renewable Energy Standard (RFS) market failures and barriers to program (US) 69 innovation 92–5 renewable energy target (RET) tax competition 95–7 subsidies 62 by public sector 132

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public support mechanisms for 95, concessions on 43 130–39 shale gas, investment in 68 refundable tax credit 95 Ship Money 161 regime alignment 106 Siry, Darryl 73 strategic development programme small- and medium-sized enterprises 98 (SMEs) 114 subsidisation of 56 Smart Grid programme 134 tax competition 95–7 social benefits, of reducing externalities tax incentives for 91 49, 91, 201, 243 turnover on 115 social costs, of intervention 171, 243 utility of tax expenditures in 56 social equity 11 wages paid to researchers 105–6 social insurance 183 research and development tax incentives social security 105, 110, 145, 184 (R&DTIs) 100–101, 133, 138 social welfare function, notion of 151, availability of 140 178 ‘boundary-pushing’ potential 102 social wellbeing 249 capital allowances 116–18 Solar Cities project (Australia) 136 categories of eligible expenses solar hot water rebate programme 104–9 (Australia) 67–8 human resources 105–9 solar PV schemes 260–61 operating expenditures 105 solar subsidy programmes 68 concessions beyond R&D 104 spending instruments, in public finance 9 defined 101–3 limits of 258–63 effectiveness of 123 start-up companies 102, 115 eligibility criteria for 108 applying for energy subsidies 73 expenditure-based incentive regimes revenue generation 95 101–25 ‘valley of death’ syndrome 95 good practice in administering 146 state aid incentive base for 103–4 definition of 57 programmes to foster R&D ‘de minimis’ aid 58 activities 103 ‘prior notification’ requirement 58 qualifying expenditure for 103 state resources, transfer of 57 tax and direct expenditure St Petersburg Guidelines on programmes 140–44 Environmental Funds in the tax base for 101, 109–10 Transition to a Market Economy value of 124 192–3 resource allocation, by tax expenditures subsidy effect of tax expenditures 30 distortions to 41 Sullivan, John 225 effect on 32–5 ‘Superfund’ programme 60 resource pricing principle 171 supply-push strategies 98–100 Resources for the Future (RFF) 181 effectiveness of 98 restructuring, of tax expenditure Surrey’s expenditure control theory 9, programmes 196 10–12, 17, 244, 257 revenue costs, of the tax expenditure 38 implementation of 11 revenues raised from taxes 8, 148, 171 stages of 11–12 instruments for 158, 189 tenets of 59 reverse engineering 92 transport subsidies and 196 ‘ring-fencing’ of taxes 148 sustainable development 85, 246, 268 Sustainable Geoscience Australia 45 Initiative 138

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NOx tax 177, 185, 189 utility of 44 vehicle scrapping charge–refund benchmark tax base 11 scheme 175 budgetary costs of 24–7 capacity of 258 targeted tax preferences 22, 39, 54 characteristics of 26 targeting, of tax expenditure programmes definition of 251 automatic 37 direct expenditures and 22–3, 46 discretionary 37 economic equivalence of 22 hybrid 37 effectiveness of 11, 123, 245 tax and direct expenditure programmes equity effects of 29 5–6, 11, 23, 26, 35, 77, 140–44 evaluation of 12, 24–7, 252 tax base, for R&DTI regimes 109–10 features of 18–20 tax breaks 10, 33 implementation of 197–8 for intellectual property 125–30 limitations of 26, 257 retention of 68 measurement of 201 tax burdens notion of 9 differentiation in 29 operation of 42 distribution of 31 parliamentary scrutiny and tax bureaucracy 42 accountability of 11 tax codes 256, 266 platform for reform 251–8 Federal U.S. tax code 255 and policy implementation 250–51 on human resources 11, 27, 91, 103, as policy tools to address equity 105 issues 35 for non-revenue purposes 255 predilection for 34 tax competition 95–7, 130 proliferation of 252, 257 tax concessions 5, 28 provisions for employer-provided housing tax concessions 28 cars 223 owner-occupied 28 reassessment of 44–5 inequities fostered by 212–16 restructuring of 11, 196, 258 policy basis for 208–12 retention of 210 reassessment of 209 sunset clauses in 42 tax credits 39, 101, 117 Surrey’s expenditure control theory bases for applying 111–14 and 10–12, 17 hybrid schemes 113–14 targeting of see targeting, of tax incremental-based schemes expenditure programmes 112–13 Tax Expenditures Statements volume-based schemes 112 (Australia) 215 deductible allowances and 110–11 as tool for implementing for ethanol production 69, 70 government policy 9 payroll withholding 105 ‘upside-down’ subsidy effect of 30 refundability of excess 95, 115 utility function of 44, 46 tax cuts 24, 117 tax fairness, principle of 31 middle-class 34 tax havens 129 tax deferral, for related expenditure 110 tax incentives 12, 43, 110, 215 tax expenditure budget 10–12, 34, 41, for climate-friendly technological 258 change 63

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for research and development in OECD countries 165 (R&D) 91 optimal 15 research and development tax tax treatment incentives (R&DTIs) differential 13 100–101 preferential 13 for rewarding ecologically desirable taxation, ‘benefits principle’ of 171 behaviour 57 taxes, evolution of 9 tax legislation 8, 12, 22, 40, 203, 255 taxes permits, definition of 157 tax liabilities 109–16, 115, 128, 159, 236 taxing framework, mechanics of computation of 12 annual taxable benefit 207 tax neutrality in Australia 206–8 benchmark of 202 operating cost method (OCM) 206 in relation to company cars 214 overview of 206 tenets of 214 statutory formula method (SFM) tax packaging 159–60 206–7 46, 96, 180, 202–3, 214, 246, taxpayers 255, 257–8 protection from arbitrary evaluation of 29 discrimination 31 expenditure control theory and 44–5 rent-seeking 33, 47 federal energy 60 wellbeing, measurement of 20 implementation of 44 technological innovation international conferences on 41 innovation, technology-induced principle of 9, 21 see innovation, for revenue purposes 247 technology-induced tax reform leadership role in 81, 90–92 defined 258 technology lock-ins 67, 120, 146, 210 process of 11 television licence fees 154 Tax Reform Act (1986), US 255 tradable permit schemes 50 tax refunds 171, 175–6 trademarks 126, 128 to energy intensive industries 61 transparency, principle of 36 tax subsidy 10, 22, 45 transport fuels market 74 biofuel subsidies 67 transport-related externalities 244, 246, on congestion, noise and accidents 247 221–3 transport subsidies effectiveness of 123–4, 222 car fringe benefits tax (FBT) regime energy policy 55 196 for ‘environmental goods’ 54 challenges of restructuring 198–203 in environmental policy context company car taxation (CCT) regime 266–8 196 evaluation of 123–5 cost–benefit analysis of 201 perverse 61–2 employee car tax subsidies 196 policy-instrument mix in 64 environmental impacts of 194, 244 renewable energy target (RET) impact on environmental damage subsidies 62 200 restructuring of 223 in low-carbon technologies 198 use in environmental policy 56 process of reforming 195 tax system ‘public good’ aspects of 194 components of 12–13 removal of 200 elements of 13 socio-economic benefits of 194 fairness and efficiency of 20

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Surrey’s tax expenditure analysis Joint Committee on Taxation 14, 30, and 196 44, 46 tax expenditure analysis of 196 Lieberman-Warner Climate Security Treaty on Functioning of the EU 57 Act (2008) 186 Article 107(1) of 57 Patent and Trademark Office 127 turnover on R&D 115 Public Utilities Regulatory Policy Act 1978 (PURPA) 259 United Kingdom (UK) tax policy discourse 9 Administration of Climate Change Tax Reform Act (1986) 255 Programs 137 UN Sustainable Development Goal Climate Change Levy (CCL) 156 (SDG7) 268 Committee of Public Accounts 136 ‘upside-down’ subsidy effect of tax company car tax (CCT) reforms expenditures 30 234–40 user pays principle 171 Environmental Audit Committee user taxes 171–2 (EAC) 166 House of Commons 156 ‘valley of death’ syndrome 95, 98, 258 National Insurance Contributions value-added tax (VAT) 15, 163, 227 (NICs) scheme 155–6, 235–6 concessions on 43 renewable energy schemes in 136 value of tax expenditures 39–40, 250 spending on cleantech programmes venture capital investment 95 137 venture innovation 84 Spending Review (2010) 156 vertical equity, principle of 29–30, 204 United Petroleum company (Australia) 74 war debts, costs of 162 United States (US) waste management fees 175 biofuels blending mandate 68 waste tax, in Austria 179 Budget Enforcement Act (1990) 164 welfare consensus, disintegration of 162 Congressional Budget and welfare costs, of reducing demand for Impoundment Act (1974) 251 travel 199 Department of Commerce 127 welfare economics 49 Energy Independence and Security Wicksell, Knut 166 Act (EIS Act, 2007) 69 Wilmar BioEthanol company (Australia) Energy Tax Act (1978) 69 74 Gramm-Rudman-Holdings Act wind-energy installations, accelerated (GRH) 164 depreciation measures for 120 Internal Revenue Service 109, 143 worker retention 208 World Energy Investment 2019 report 85

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