Financing Euro Dividend with Eco Taxes 2 Ecotax and Share As A

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Dr. Ulrich Schachtschneider energy consultant/ freelance social scientist UBIE member of board Oldenburg/Germany

Financing Euro Dividend with Eco Taxes

1 Boundaries of environmental policies

2 EcoTax and Share as a libertarian and redistributive environmental policy

3 First steps are possible in Europe

http://ulrich-schachtschneider.de Boundaries of Environmental Policies 1:

Economical Instruments

Taxing environmental bads: Eco Tax (e.g. CO tax) - 2

- Rewarding environmental goods: subventions from the state (e.g. energetical renovation programs) subventions from the consumer (e.g. EEG in Germany: all electricity consumers pay a fee to finance renewables)

e iv l ct ia ffe oc e ns in u : h: ow ig l h oo o t To

eco tax in Germany 2000-2003

Ct/kWh 25 23

15 end price 10 eco tax 6 6

5 2 0,16 0,16 0 Electricity Gas Oil

Boundaries of Environmental Policies 2: Administrative Laws

- Forbidding environmental bads e.g. nuclear power, light bulbs Size of appartment ? amount of elt. devices? - Limiting environmental bads kg meat yearly? e.g. energy consumption per m² (kWh/m² (ENEV)) Car miles yearly? e.g. maximum consumption for electrical devices Maximum of cultural events? e.g. maximum emission per car km (CO²/km)

il ta de ! n ife i rt l ng fo ily ri ef a ee l l d st ro a r nt on fo co rs d d e an n p ! m a in ry e ve n to d ti tio a ve tra n ip si is ve nc es in er a c m nt em Ex ad I t g o Bi N Boundaries of Environmental Policies 3:

Appeal Strategies When having big economic inequalities? - Promoting correct socio-environmental values: Less is More! Within an atmosphere of Use things together! individual survival Live universal with correct eco footprint! orientation?

With alienated work?

- Appealing to ones public spirit In a social fragmented society?

- Exemplifying ecological correct lifestyle In a pluralist modern society?

aliented work → compensational consumption

alienation repression time robbery

I have a dream

compensation/status passive consumation orientation Inequality and working hours r a e y

s r u o h

g n i k r o w

Ref.: Wilkinson/ income differences: relation rich to middle class (90:50 percentiles) Pickett 2010 Inequality and recycling rate w o l

g n i k n a r

g n i l c y c e r

low high income differences

Ref.: Wilkinson/ Pickett 2010 social fragmentation → mistrust →less social responsibility

Eco Tax: at the Beginning and the End

+10 € CO2: + € +20 €

+15 € coal extraction: + €

+15 €

10 kg meat +30 € +95€

+20 € +45 € +30 €

water pollution fertilizer minerals (eutrophication/ extraction: nitrates):+ € + €

when using when extracting sinks ressources Eco Tax: at the Beginning and the End

+0 € CO2: + € +0 €

+15 € coal extraction: + €

+15 €

10 kg +0 € eco meat +15€

+15 €

water pollution fertilizer minerals (eutrophication/ extraction: nitrates):+ € + €

when using when extracting sinks ressources Eco Tax: at the Beginning and the End

CO : 2 fuel extraction: + € +50 € +30 € +€

+80 € air pollution: +20 € overall: + € buying, running disposing sealing landscape: + € +230 € +30 € product neutral… waste disposal: resource + € extraction:

+60 € + € +90 € water pollution : + € + € when using +40 € when extracting sinks ressources Tax and Share = Ecological steering and redistribution = (partial) Ecological Basic Income

rich equal dividend

ecological revenue

poor

= ecological eco tax consumption basic income expenditures burden through ecological tax reform, Germany 2003

25,00

20,43 20,00 18,12 16,66 15,90 15,06 t h a t 15,00 13,64

n 13,26 n o o M

m 11,59 / / o o r

r 10,08 u u

E 10,00 E 7,60

5,00

0,00 724 1029 1233 1411 1586 1772 1988 2282 2745 4346 IncomeNetto-Monatseinkommen per month (class average) (Klassendurchschnitt)

data source: DIW weekly report 14/2009, calculation and graphics: U. Schachtschneider Ecological Basic Income: Implementation step by step… slow increase of tax rates and revenues

extension of tax objects

Tax and share / Ecological Basic Income: We can start now in Europe

 Switzerland has started:

steering fee »Lenkungsabgabe» (CO2, VOC) since 2008 shared back to everyone (2015: 62 €/p year)

 EU-ETS (European Emission Trade System) revenue 2015: 4,9 bn. (10€/p year) (very low price, 4 €/t CO ; most of ETS emissions not auctioned) 2

when auctioning all CO -Emissions in Europe: 2 with 20€/t CO : (160 €/p year) 2

when reducing continously the cap as environmental organisations demand: with 100 €/t CO (800 €/p year or 67 €/p month) 2

Ecological Euro Dividend

 helps financing Euro Dividend

 an entrance into Basic Income as a principle additional to current social system

 a step to libertarian and social environmental policy

 brings together environmental and social solidarity movement