Lanterna Rally

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Published: 2023

Total Pages: 0

ISBN-13: 9789268049617

There is a very clear need to better understand the impacts of environmental taxation in non-OECD countries. Environmental taxes have the potential to deliver multiple benefits by addressing the economic drivers behind the environmental challenges facing non-OECD countries, enhancing efficient use of resources, and mobilising revenue. However, information in the public domain is relatively sparse, and scientific research on environmental taxes in low- and middle-income countries (LMICs), aside from carbon-energy taxes and other carbon pricing mechanisms, has been rather limited. In view of this, this report collates the results of a literature review conducted in 2022 and 2023 on environmental taxation in non-OECD countries, focussing on environmental taxes that are not carbonenergy taxes, as for these measures a great deal of evidence is already available in the public domain. The report also includes the results of five "deep dives" to examine five environmental tax instruments in depth in Ghana, Guyana, Morocco, Viet Nam and Zambia. The report sets out to identify data on green tax impacts where it exists, and to undertake thorough research into these taxes in non-OECD countries. Ultimately, it is hoped that this research can inform development cooperation organisations and policymakers in non-OECD countries on how best to design environmental taxes, avoid pitfalls, and manage potential trade-offs between social equity, environmental effectiveness and domestic revenue mobilisation (DRM). Building on the literature review and deep dives, the report sets out to draw together lessons learned from existing environmental tax instruments, and to identify best and less good practices in their implementation. It also aims to highlight possible ways forward for the European Commission to engage in international policy dialogue with organisations and platforms working on environmental taxation, and to engage in a more targeted way at the national level, through EU in-country delegations. The literature review revealed the data gaps and need for further research on environmental taxation in the context of non-OECD countries, to create a robust evidence base and foster a better understanding of the impacts and interactions of environmental taxes (4.1). It also unearthed a number of measures that existed on paper but for which very little or no evidence or information could be found in the public domain.