DOCSLIB.ORG

CARBON TAX GUIDE a Handbook for Policy Makers Public Disclosure Authorized Public Disclosure Authorized CARBON TAX GUIDE a Handbook for Policy Makers

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
CARBON TAX GUIDE a Handbook for Policy Makers Public Disclosure Authorized Public Disclosure Authorized CARBON TAX GUIDE a Handbook for Policy Makers Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized CARBON TAX GUIDE CARBON TAX A Handbook forPolicy Makers CARBON TAX GUIDE A Handbook for Policy Makers MARCH 2017 CARBON TAX GUIDE A Handbook for Policy Makers MARCH 2017 © 2017 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington, DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved 1 2 3 4 19 18 17 16 This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Nothing herein shall constitute or be considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved. Rights and Permissions This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) http://creativecommons. org /licenses/ by/3.0/igo. Under the Creative Commons Attribution license, you are free to copy, distribute, transmit, and adapt this work, including for commercial purposes, under the following conditions: Attribution—Please cite the work as follows: Partnership for Market Readiness (PMR) 2017. Carbon Tax Guide: A Handbook for Policy Makers. World Bank, Washington, DC. License: Creative Commons Attribution CC BY 3.0 IGO Translations—If you create a translation of this work, please add the following disclaimer along with the attribution: This translation was not created by The World Bank and should not be considered an official World Bank translation. The World Bank shall not be liable for any content or error in this translation. Adaptations—If you create an adaptation of this work, please add the following disclaimer along with the attribution: This is an adaptation of an original work by The World Bank. Views and opinions expressed in the adaptation are the sole responsibility of the author or authors of the adaptation and are not endorsed by The World Bank. Third-party content—The World Bank does not necessarily own each component of the content contained within the work. The World Bank therefore does not warrant that the use of any third-party-owned individual component or part contained in the work will not infringe on the rights of those third parties. The risk of claims resulting from such infringement rests solely with you. If you wish to re-use a component of the work, it is your responsibility to determine whether permission is needed for that re-use and to obtain permission from the copyright owner. Examples of components can include, but are not limited to, tables, figures, or images. All queries on rights and licenses should be addressed to the Publishing and Knowledge Division, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: [email protected]. Design: Eszter Bodnar (www.visilio.com) DESIGN CARBON TAX GUIDE: A HANDBOOK FOR POLICY MAKERS 3 ACKNOWLEDGMENTS This Carbon Tax Guide was prepared for the Partnership (British Columbia); Nicola Borregaard, Francisco Javier for Market Readiness (PMR), by a team of consultants from Pinto Pardo, Juan Pedro Searle, Paula Tassara, and Climate Focus, the University of Indiana, School of Public Nicholas Westenenk (Chile); Felipe De Leon (Costa Rica); and Environmental Affairs (SPEA), and the Gnarley Tree Jean Giraud (France); Malin Ahlber and Nadine Pauly Sustainability Institute (GTSI). Pauline Kennedy (World (Germany); Shweta Kumar (India); Ciran Conroy, Gerry Bank) provided substantive input and managed the project. Kenny, and Ambrose Murray (Ireland); Reo Kawamura, Toshiali Nagata, and Yuji Mizuno (Japan); Juan Carlos The lead authors of the Carbon Tax Guide were Darragh Arredondo, Soffia Alarcon Diaz, Saul Pereyera Garcia, Conway (Climate Focus) and Kenneth Richards (SPEA). Victor Hugo Escalona Gómez, Carlos Muñoz-Piña Stephanie Richards (GTSI) led the preparation of the tech- (Mexico); Ingrid Hoff (Norway); Memory Matchingambi, nical appendix. Several contributing authors also provided Sharlin Hemraj, and Deborah Ramalope (South Africa); substantial inputs: Paul Keenlyside, Szymon Mikolajczyk Susanne Åkerfeldt, Henrik Hammar, Mats-Olof Hansson, and Charlotte Streck (Climate Focus), and Justin Ross, and Johan Nylander (Sweden); Andrea Burkhardt Antung Anthony Liu, and Ahn Tran (SPEA). (Switzerland); and Sila Guiance and Joanna Wain (United Kingdom). In addition, the following persons provided valuable re­­­search, editing, and other kinds of support in the pre- We also wish to acknowledge input and peer review pa­­­ration of the Carbon Tax Guide: Leo Mongendre, Sai provided by a range of other experts: Claudia Dias Soares Sindhura Mamillapalli, Ingrid Schulte, and Sebastian Müller (Green Budget Europe); Ian Parry (IMF); Richard Baron, (Climate Focus); Elisabeth Andrews, Keyao Sun, Jingyao Nils-Axel Braathen, Floren Flues, and Kurt Van Dender Gu, and Zoya Atiq (SPEA); and Yu Song, Delaney Bolger, (OECD); Perumal Armugam and Phillip Eyre (UNFCCC); and Logan Pfeiffer (GTSI). and Martina Zahno (University of Zurich). We sincerely thank those government experts who shared Finally, we thank colleagues at the World Bank Group their practical insights and knowledge relating to carbon tax who also reviewed the report and provided useful input design and implementation through meetings, inter views, and feed back: Adrien de Bassompierre, Dirk Heine, and review of the Guide. These include Kate Hancock, Blanca Moreno-Dodso, Maja Murisic, Grzegorz Peszko, Gareth Prosser, and Matthew Stuchbery (Australia); Aloisio and Suphachol Supachalasai. The Guide (including the de Melo and Ludmila Vidigal Silva (Brazil); Anne Foy Technical Appendix) was edited by Inge Pakulski. 4 CARBON TAX GUIDE: A HANDBOOK FOR POLICY MAKERS LIST OF ACRONYMS Agriculture, Forestry, and Other Land AFOLU MNC Multinational Corporation Use BAU Business As Usual M&E Monitoring and Evaluation BCA Border Carbon Adjustment MRV Measuring, Reporting and Verification National Atmospheric Emissions CCS Carbon, Capture and Sequestration NAEIS Inventory System CDM Clean Development Mechanism NGO Non-governmental Organization CER Certified Emission Reduction NO Nitrogen Oxide Computable General Equilibrium x CGE (model) OAIS Old-Age Insurance System CPI Consumer Price Index Organisation for Economic OECD EITE Emission-Intensive Trade-Exposed Co-operation and Development Metric tons of carbon dioxide ETS Emissions Trading System tCO e 2 equivalent European Union Emissions Trading Particulate Pollution that is 2.5 EU ETS PM2.5 System micrometers or less in diameter EU European Union PMR Partnership for Market Readiness Food and Agriculture Organization of FAO RPS Renewable Portfolio Standard the United Nations General Agreement on Tariffs and Pollutant Release and Transfer GATT PRTR Trade Register DGP Gross Domestic Product SARS South Africa Revenue Service GHG Greenhouse Gas SCC Social Cost of Carbon Institute for European Environmental United National Framework IEEP UNFCCC Policy Convention on Climate Change Intergovernmental Panel on Climate IPCC U.S. REP United States Regional Energy Policy Change VAR Vector autoregressive (models) NDC Nationally Determined Contribution VAT Value added tax MAB Marginal Abatement Benefit World Business Council for WBCSD MAC Marginal Abatement Cost Sustainable Development MEB Marginal Emissions Benefit WRI World Resources Institute MW Megawatt WTO World Trade Organization TABLE OF CONTENTS 5 Synthesis TABLE OF CONTENTS Introduction SYNTHESIS: CARBON TAXES IN BRIEF 9 Introducing the design process 10 Deciding Whether to Adopt a Carbon Tax Adopt a Carbon When is a carbon tax the right choice? 10 Setting the stage for tax design 12 Designing carbon taxes 13 Evaluate outcomes and review 19 Capitalizing on carbon taxes’ potential 21 Preparing for Carbon INTRODUCTION 22 Adoption Tax 1.1 Background: growing interest in carbon taxes 22 1.2 Purpose of this Guide 22 1.3 How to use this Guide 22 DECIDING WHETHER TO ADOPT A CARBON TAX 26 Carbon Modeling 2.1 Introduction 26 Taxes 2.2 Introducing carbon taxes 27 2.3 Carbon taxes and policy instrument options 29 Defining the Tax Base Tax PREPARING FOR CARBON TAX ADOPTION 41 3.1 Introduction 42 the Tax Rate the Tax 3.2 Determining policy objectives 42 Determining 3.3 Framing the national context 47 3.4 Principles of carbon tax design 52 MODELING CARBON TAXES 56 Tax of the Carbon Effects 4.1 Introduction 57 Unwanted Avoiding 4.2 Uses of modeling analysis 57 4.3 Overview of modeling approaches 57 4.4 Partial economic and technology models 59 4.5 Systemic economic and technology models 65 4.6 Choosing among the modeling approaches 70 Determining Use of Revenues DEFINING THE TAX BASE 74 5.1 Introduction 75 5.2 Scope of taxation 75 5.3 Crosscutting consi­­de ra­­tion – administration and MRV 85 Ensuring Oversight and Compliance DETERMINING THE TAX RATE 89 6.2 Basis for the carbon tax rate 90 6.3 Dynamics of the tax rate 95 AVOIDING UNWANTED EFFECTS OF THE CARBON TAX 99 Evaluating Policy Outcomes 7.1 Introduction 100 7.2 Understanding
Load more

Recommended publications
  • Tax Appeals Rules Procedures
    Tax Appeals Tribunal Rules & Procedures The rules of the game February 2017 Glossary of terms KRA Kenya Revenue Authority TAT Tax Appeals Tribunal TATA Tax Appeals Tribunal Act TPA Tax Procedures Act VAT Value Added Tax 2 © Deloitte & Touche 2017 Definition of terms Tax decision means: a) An assessment; Tax law means: b) A determination of tax payable made to a a) The Tax Procedures Act; trustee-in-bankruptcy, receiver, or b) The Income Tax Act, Value Added liquidator; Tax Act, and Excise Duty Act; and c) A determination of the amount that a tax c) Any Regulations or other subsidiary representative, appointed person, legislation made under the Tax director or controlling member is liable Procedures Act or the Income Tax for under specified sections in the TPA; Act, Value Added Tax Act, and Excise d) A decision on an application by a Duty Act. taxpayer to amend their self-assessment return; Objection decision means: e) A refund decision; f) A decision requiring repayment of a The Commissioner’s decision either to refund; or allow an objection in whole or in part, or g) A demand for a penalty. disallow it. Appealable decision means: a) An objection decision; and b) Any other decision made under a tax law but excludes– • A tax decision; or • A decision made in the course of making a tax decision. 3 © Deloitte & Touche 2017 Pre-objection process; management of KRA Audit KRA Audit Notes The TPA allows the Commissioner to issue to • The KRA Audits are a tax payer a default assessment, amended undertaken by different assessment or an advance assessment departments of the KRA that (Section 29 to 31 TPA).
    [Show full text]
  • Options for Avoiding Carbon Leakage
    21 Options for avoiding carbon leakage Carolyn Fischer Resources for the Future Carbon leakage – the increase in foreign emissions that results as a consequence of domestic actions to reduce emissions – is of particular concern for countries seeking to put a substantial price on carbon ahead of their trading partners. While energy market reactions to changes in global fossil fuel demand are difficult to avoid, absent a global price on carbon, some options are available to address leakage associated with changes in competitiveness of energy-intensive, trade-exposed industries. This chapter discusses the main legal and economic trade-offs regarding the use of exemptions, output-based rebating, border carbon adjustment, and sectoral agreements. The potential for clean technology policies to address the energy market channel is also considered. Ultimately, unilateral policies have only unilateral options for addressing carbon leakage, resulting in weak carbon prices, a reluctance to go first and, for those willing to forge ahead, an excessive reliance on regulatory options that in the long run are much more costly means of reducing emissions than carbon pricing. Recognising those costs, if enough major economies could agree on a coordinated approach to carbon pricing that spreads coverage broadly enough, carbon leakage would become less important an issue. Furthermore, a multilateral approach to anti-leakage measures can better ensure they are in harmony with other international agreements. If anti-leakage measures can support enough adherence to ambitious emissions reduction programmes, they can contribute to their own obsolescence. 297 Towards a Workable and Effective Climate Regime 1 Introduction Carbon leakage is a chief concern for governments seeking to implement ambitious emissions reduction policies – particularly those that place high prices on carbon – ahead of similar actions on the part of their major trading partners.
    [Show full text]
  • How to Price Carbon to Reach Net-Zero Emissions in the UK
    How to price carbon to reach net-zero emissions in the UK Joshua Burke, Rebecca Byrnes and Sam Fankhauser Policy report May 2019 The Centre for Climate Change Economics and Policy (CCCEP) was established in 2008 to advance public and private action on climate change through rigorous, innovative research. The Centre is hosted jointly by the University of Leeds and the London School of Economics and Political Science. It is funded by the UK Economic and Social Research Council. More information about the ESRC Centre for Climate Change Economics and Policy can be found at: www.cccep.ac.uk The Grantham Research Institute on Climate Change and the Environment was established in 2008 at the London School of Economics and Political Science. The Institute brings together international expertise on economics, as well as finance, geography, the environment, international development and political economy to establish a world-leading centre for policy-relevant research, teaching and training in climate change and the environment. It is funded by the Grantham Foundation for the Protection of the Environment, which also funds the Grantham Institute – Climate Change and the Environment at Imperial College London. More information about the Grantham Research Institute can be found at: www.lse.ac.uk/GranthamInstitute About the authors Joshua Burke is a Policy Fellow and Rebecca Byrnes a Policy Officer at the Grantham Research Institute on Climate Change and the Environment. Sam Fankhauser is the Institute’s Director and Co- Director of CCCEP. Acknowledgements This work benefitted from financial support from the Grantham Foundation for the Protection of the Environment, and from the UK Economic and Social Research Council through its support of the Centre for Climate Change Economics and Policy.
    [Show full text]
  • Leakage, Welfare, and Cost-Effectiveness of Carbon Policy
    NBER WORKING PAPER SERIES LEAKAGE, WELFARE, AND COST-EFFECTIVENESS OF CARBON POLICY Kathy Baylis Don Fullerton Daniel H. Karney Working Paper 18898 http://www.nber.org/papers/w18898 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 March 2013 We are grateful for suggestions from Jared Carbone, Brian Copeland, Sam Kortum, Ian Sue Wing, Niven Winchester, and participants at the AEA presentation in San Diego, January 2013. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer- reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications. © 2013 by Kathy Baylis, Don Fullerton, and Daniel H. Karney. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. Leakage, Welfare, and Cost-Effectiveness of Carbon Policy Kathy Baylis, Don Fullerton, and Daniel H. Karney NBER Working Paper No. 18898 March 2013 JEL No. Q27,Q28,Q56,Q58 ABSTRACT We extend the model of Fullerton, Karney, and Baylis (2012 working paper) to explore cost-effectiveness of unilateral climate policy in the presence of leakage. We ignore the welfare gain from reducing greenhouse gas emissions and focus on the welfare cost of the emissions tax or permit scheme. Whereas that prior paper solves for changes in emissions quantities and finds that leakage may be negative, we show here that all cases with negative leakage in that model are cases where a unilateral carbon tax results in a welfare loss.
    [Show full text]
  • Economic Analysis of Methane Emission Reduction Opportunities in the U.S. Onshore Oil and Natural Gas Industries
    Economic Analysis of Methane Emission Reduction Opportunities in the U.S. Onshore Oil and Natural Gas Industries March 2014 Prepared for Environmental Defense Fund 257 Park Avenue South New York, NY 10010 Prepared by ICF International 9300 Lee Highway Fairfax, VA 22031 blank page Economic Analysis of Methane Emission Reduction Opportunities in the U.S. Onshore Oil and Natural Gas Industries Contents 1. Executive Summary .................................................................................................................... 1‐1 2. Introduction ............................................................................................................................... 2‐1 2.1. Goals and Approach of the Study .............................................................................................. 2‐1 2.2. Overview of Gas Sector Methane Emissions ............................................................................. 2‐2 2.3. Climate Change‐Forcing Effects of Methane ............................................................................. 2‐5 2.4. Cost‐Effectiveness of Emission Reductions ............................................................................... 2‐6 3. Approach and Methodology ....................................................................................................... 3‐1 3.1. Overview of Methodology ......................................................................................................... 3‐1 3.2. Development of the 2011 Emissions Baseline ..........................................................................
    [Show full text]
  • Transfer of Ownership Guidelines
    Transfer of Ownership Guidelines PREPARED BY THE MICHIGAN STATE TAX COMMISSION Issued October 30, 2017 TABLE OF CONTENTS Background Information 3 Transfer of Ownership Definitions 4 Deeds and Land Contracts 4 Trusts 5 Distributions Under Wills or By Courts 8 Leases 10 Ownership Changes of Legal Entities (Corporations, Partnerships, Limited Liability Companies, etc.) 11 Tenancies in Common 12 Cooperative Housing Corporations 13 Transfer of Ownership Exemptions 13 Spouses 14 Children and Other Relatives 15 Tenancies by the Entireties 18 Life Leases/Life Estates 19 Foreclosures and Forfeitures 23 Redemptions of Tax-Reverted Properties 24 Trusts 25 Court Orders 26 Joint Tenancies 27 Security Interests 33 Affiliated Groups 34 Normal Public Trades 35 Commonly Controlled Entities 35 Tax-Free Reorganizations 37 Qualified Agricultural Properties 38 Conservation Easements 41 Boy Scout, Girl Scout, Camp Fire Girls 4-H Clubs or Foundations, YMCA and YWCA 42 Property Transfer Affidavits 42 Partial Uncapping Situations 45 Delayed Uncappings 46 Background Information Why is a transfer of ownership significant with regard to property taxes? In accordance with the Michigan Constitution as amended by Michigan statutes, a transfer of ownership causes the taxable value of the transferred property to be uncapped in the calendar year following the year of the transfer of ownership. What is meant by “taxable value”? Taxable value is the value used to calculate the property taxes for a property. In general, the taxable value multiplied by the appropriate millage rate yields the property taxes for a property. What is meant by “taxable value uncapping”? Except for additions and losses to a property, annual increases in the property’s taxable value are limited to 1.05 or the inflation rate, whichever is less.
    [Show full text]
  • The Cost of the Vote: Poll Taxes, Voter Identification Laws, and the Price of Democracy
    File: Ellis final for Darby Created on: 4/9/2009 8:17:00 PM Last Printed: 5/19/2009 1:10:00 PM THE COST OF THE VOTE: POLL TAXES, VOTER IDENTIFICATION LAWS, AND THE PRICE OF DEMOCRACY ATIBA R. ELLIS† INTRODUCTION The election of Barack Obama as the forty-fourth President of the United States represents both the completion of a historical campaign season and a triumph of the Civil Rights revolution of the twentieth cen- tury. President Obama’s 2008 campaign, along with the campaigns of Senators Hillary Rodham Clinton and John McCain, was remarkable in both the identities of the politicians themselves1 and the attention they brought to the political process. In particular, Obama attracted voters from populations which have not been traditionally represented in na- tional politics. His run was hallmarked, in large part, by significant grassroots fundraising, a concerted effort to generate popular appeal, and, most important, massive voter turnout efforts.2 As a result, this election cycle generated significant increases in participation during the primary season.3 Turnout in the general election did not meet anticipated record † Legal Writing Instructor, Howard University School of Law. J.D., M.A., Duke Univer- sity, 2000. An early version of this paper was presented at the Writer’s Workshop of the Legal Writing Institute in summer 2007. Later versions were presented at the November 2007 Howard University School of Law faculty colloquy and the September 2008 Northeast People of Color Legal Scholarship Conference. I gratefully acknowledge Andrew Taslitz, Sherman Rogers, Derek Black, Paulette Caldwell, Phoebe Haddon, and Daniel Tokaji for their thoughtful comments on earlier drafts of this paper.
    [Show full text]
  • Department of Customs
    DEPARTMENT OF CUSTOMS FAQ – CUSTOMS GOODS CLEARANCE QUESTION ANSWER COMMENT In order to clear your goods within the five hour – five day timeframe, the importer should: a. Obtain the CRF (whether DI or PSI) from BIVAC at least 5 days prior to the arrival of It takes minimum five hours and maximum five the goods. days to clear goods at Customs, provided the b. Make a goods declaration immediately How long does it take to importer is compliant with the Customs laws, and after the cargo manifest is registered with clear goods at a Customs all necessary documentation is completed in time Customs by the shipping agency. 1. port, and what do I need by the broker/agent. For more information on c. Pay your taxes and terminal handling to do to clear my goods customs procedures, please refer to Customs charges immediately after receiving a duty faster? clearance procedures at www.lra.gov.lr. and tax assessment notice from Customs. d. Obtain a delivery order from the shipping agency immediately after the cargo is discharged in the cargo terminal. e. Make sure to have a delivery truck available in time for immediate loading of cargo by the terminal operator. Can I ship my goods to Unless otherwise expressly exempt, all importers The penalties for not pre-inspecting goods prior to Liberia without pre- are required to do pre-shipment inspection before shipment to Liberia are: 2. shipping goods to Liberia. the Government, 1 | P a g e shipment inspection through Administrative Regulation No. 12. 14263 – a. 10% of CIF value for first and second (PSI)? 2/MOF/R/BCE/14 October 2013, requires offense penalties for failure to have goods pre-inspected.
    [Show full text]
  • Carbon Emission Reduction—Carbon Tax, Carbon Trading, and Carbon Offset
    energies Editorial Carbon Emission Reduction—Carbon Tax, Carbon Trading, and Carbon Offset Wen-Hsien Tsai Department of Business Administration, National Central University, Jhongli, Taoyuan 32001, Taiwan; [email protected]; Tel.: +886-3-426-7247 Received: 29 October 2020; Accepted: 19 November 2020; Published: 23 November 2020 1. Introduction The Paris Agreement was signed by 195 nations in December 2015 to strengthen the global response to the threat of climate change following the 1992 United Nations Framework Convention on Climate Change (UNFCC) and the 1997 Kyoto Protocol. In Article 2 of the Paris Agreement, the increase in the global average temperature is anticipated to be held to well below 2 ◦C above pre-industrial levels, and efforts are being employed to limit the temperature increase to 1.5 ◦C. The United States Environmental Protection Agency (EPA) provides information on emissions of the main greenhouse gases. It shows that about 81% of the totally emitted greenhouse gases were carbon dioxide (CO2), 10% methane, and 7% nitrous oxide in 2018. Therefore, carbon dioxide (CO2) emissions (or carbon emissions) are the most important cause of global warming. The United Nations has made efforts to reduce greenhouse gas emissions or mitigate their effect. In Article 6 of the Paris Agreement, three cooperative approaches that countries can take in attaining the goal of their carbon emission reduction are described, including direct bilateral cooperation, new sustainable development mechanisms, and non-market-based approaches. The World Bank stated that there are some incentives that have been created to encourage carbon emission reduction, such as the removal of fossil fuels subsidies, the introduction of carbon pricing, the increase of energy efficiency standards, and the implementation of auctions for the lowest-cost renewable energy.
    [Show full text]
  • Appendix: Uk Cost Abatement Curve
    APPENDIX: UK COST ABATEMENT CURVE Summary The Task Force commissioned McKinsey to undertake what is currently the first comprehensive study of its kind for the United Kingdom. The study took as its starting point a previous McKinsey study on global greenhouse gas emissions. It then tailored that work to the UK, using a methodology developed over the past two years with the assistance of leading institutions and experts. A research team from McKinsey constructed a baseline forecast for UK emissions to 2030, drawing on a number of government and public sources. Working with Task Force members and other leading companies, the team then estimated the potential benefits and cost for over 120 different greenhouse gas abatement options that could help the UK meet its targets. These options were then represented in graphical form, illustrating the cumulative potential for emission reduction on the horizontal axis, and the cost per ton of emissions avoided on the vertical axis. This graph represents the first comprehensive UK marginal cost abatement curve. We do not expect this study to be the final word on how to meet the targets, and fully expect that further analysis will be necessary to guide policy choices. However, the level of detail obtained by this study is higher than anything produced before in the UK, and offers some important insights on the task that faces us. While considerable improvements have been achieved, the UK targets will not be met without significant additional effort. All abatement options must be considered if we are to meet the targets. Meeting the 2020 target will be extremely challenging, requiring nothing less than a full implementation of all the options.
    [Show full text]
  • Worldwide Estate and Inheritance Tax Guide
    Worldwide Estate and Inheritance Tax Guide 2021 Preface he Worldwide Estate and Inheritance trusts and foundations, settlements, Tax Guide 2021 (WEITG) is succession, statutory and forced heirship, published by the EY Private Client matrimonial regimes, testamentary Services network, which comprises documents and intestacy rules, and estate Tprofessionals from EY member tax treaty partners. The “Inheritance and firms. gift taxes at a glance” table on page 490 The 2021 edition summarizes the gift, highlights inheritance and gift taxes in all estate and inheritance tax systems 44 jurisdictions and territories. and describes wealth transfer planning For the reader’s reference, the names and considerations in 44 jurisdictions and symbols of the foreign currencies that are territories. It is relevant to the owners of mentioned in the guide are listed at the end family businesses and private companies, of the publication. managers of private capital enterprises, This publication should not be regarded executives of multinational companies and as offering a complete explanation of the other entrepreneurial and internationally tax matters referred to and is subject to mobile high-net-worth individuals. changes in the law and other applicable The content is based on information current rules. Local publications of a more detailed as of February 2021, unless otherwise nature are frequently available. Readers indicated in the text of the chapter. are advised to consult their local EY professionals for further information. Tax information The WEITG is published alongside three The chapters in the WEITG provide companion guides on broad-based taxes: information on the taxation of the the Worldwide Corporate Tax Guide, the accumulation and transfer of wealth (e.g., Worldwide Personal Tax and Immigration by gift, trust, bequest or inheritance) in Guide and the Worldwide VAT, GST and each jurisdiction, including sections on Sales Tax Guide.
    [Show full text]
  • Externalities and Public Goods Introduction 17
    17 Externalities and Public Goods Introduction 17 Chapter Outline 17.1 Externalities 17.2 Correcting Externalities 17.3 The Coase Theorem: Free Markets Addressing Externalities on Their Own 17.4 Public Goods 17.5 Conclusion Introduction 17 Pollution is a major fact of life around the world. • The United States has areas (notably urban) struggling with air quality; the health costs are estimated at more than $100 billion per year. • Much pollution is due to coal-fired power plants operating both domestically and abroad. Other forms of pollution are also common. • The noise of your neighbor’s party • The person smoking next to you • The mess in someone’s lawn Introduction 17 These outcomes are evidence of a market failure. • Markets are efficient when all transactions that positively benefit society take place. • An efficient market takes all costs and benefits, both private and social, into account. • Similarly, the smoker in the park is concerned only with his enjoyment, not the costs imposed on other people in the park. • An efficient market takes these additional costs into account. Asymmetric information is a source of market failure that we considered in the last chapter. Here, we discuss two further sources. 1. Externalities 2. Public goods Externalities 17.1 Externalities: A cost or benefit that affects a party not directly involved in a transaction. • Negative externality: A cost imposed on a party not directly involved in a transaction ‒ Example: Air pollution from coal-fired power plants • Positive externality: A benefit conferred on a party not directly involved in a transaction ‒ Example: A beekeeper’s bees not only produce honey but can help neighboring farmers by pollinating crops.
    [Show full text]