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Energy prices, eco-tax policies and competitiveness in the industrial sector
Courtesy of Inderscience Publishers
This paper analyses the determinants of energy prices in industry and their impacts on energy productivity in selected countries that have introduced environment-related taxes on fossil fuels. Energy prices are mainly determined by the developments on international resource markets and by the structure of energy production in the respective countries. Owing to concerns of international competitiveness, current environment-related taxes go along with numerous deductions and exemptions in most countries so that they seldom influence energy prices. There is a positive link between energy price, energy productivity and energy intensity of various industrial sectors, but the performance of industry in terms of energy productivity seems to be barely affected by current environment-related taxation.
Keywords: eco taxation, energy prices, energy productivity, environmental tax reform, international competitiveness
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