are Environmental Taxes?
What are Environmental
do we need Environmental Taxes?
Environmental Taxes exist in Japan?
Environmental Taxes in Japan
What are Environmental Taxes?
According to the OECD, an environmental tax is a tax whose
tax base is a physical unit (or a proxy of it) that has a
proven specific negative impact on the environment. Four subsets
of environmental taxes are distinguished: energy taxes, transport
taxes, pollution taxes and resources taxes.
are a kind of economic instruments to address environmental
problems. They are designed to internalize environmental costs
and provide economic incentives for people and businesses
to promote ecologically sustainable activities.
taxes are a kind of Environmental Taxes.
Why do we need Environmental Taxes?
Because environmental taxes provide incentives to lessen
environmental burden and preserve the environment.
the environmental costs, (for example, activities that burden
the environment will be taxed, whereas activities that contribute
to the preservation of the environment will get tax break),
environmental taxes provide incentives for businesses and
individuals to integrate environmental concerns into economic
activities, and minimize negative environmental impacts.
generated by environmental taxes can be used for other environmental
preservation projects or to cut other taxes.
Tax revenues of
environmental taxes can be used for environmental preservation
or other non-environmental welfare. The revenues from environmental
taxes can be used to cut taxes such as income tax, corporate
tax and social insurance premium.
Do Environmental Taxes exist in Japan?
There are very few taxes in Japan that truly aim for environmental
sustainability. The existing fuel, energy and automobile taxes
in Japan are environmentally related taxes, rather
than environmental taxes. These taxes are of environmental
relevance, but are not levied directly based on the negative
environmental impacts. Moreover, compared to many other developed
countries, the environment-related taxes of Japan only account
for a relatively small share of the total tax rates.
needs environmental taxes to address environmental problems
both environmentally effective and economically efficiently.
Environmental Taxes in Japan
To better utilize environmental taxes as a fiscal instrument
to address environmental problems, we must implement a comprehensive
green tax reform
that entails introduction of new taxes as well as changes
in the existing fiscal policies.
Environmental taxes should be revenue-neutral. Using revenues
generated by the environmental taxes, we can cut some of the
existing taxes (e.g. income tax, corporate tax, social insurance
premiums, etc) so that the introduction of environmental taxes
doesn’t add to the overall burden of taxpayers. In the long
term, the double dividend will lead companies to better integrate
environmental concerns into decision-making and eventually
result in a structural change in the industries.
Environmental tax rates should be phased in so businesses
and households have time to adjust ways of production and
here to learn about the
progress of the introducing carbon taxes in Japan and the
positions of major players in the current debate
|BACK TO GREEN TAX REFORM|
|Japan Center for a Sustainable
Environment and Society (JACSES)
401, Sanshin Bldg., 2-3-2 Iidabashi, Chiyoda-ku, Tokyo 102-0072
Phone: +81-3-3556-7323 Fax: +81-3-3556-7328 Email:
Copyright JACSES All Rights Reserved.