Printer friendly

Effects of the Ecological Tax Reform

16 November 2004, Berlin

On April 1, 1999 the German Government introduced an Ecological Tax Reform (ETR) that increased the price of energy. Higher taxes on energy consumption provide economic incentives to save energy and use it more efficiently, thus leading to more innovation in new technologies.
The tax revenue is returned to the tax payers by using the money to lower retirement benefit deductions. By lowering non-wage labour costs, the labour factor becomes cheaper, and existing jobs can be saved even while new jobs are created (especially in the renewable energy sector).

Since its introduction, the reform has been strongly discussed. Opinion surveys show that the connection between the increase of energy costs and the decrease of non-wage labour costs is often not well understood.

Against this background, Ecologic is conducting a study on behalf of the German Federal Environmental Agency on the positive effects of the ecological tax reform. The study places emphasis on the reform’s impact on the private sector, with particular regard to enterprises which have successfully adjusted to the changes due to the reform and have profited from it, e.g. by implementing strategic business models, developing new markets or introducing new technologies, products and services. Furthermore, the effects of the reform on private households are analysed.

First results of the study will be presented to the public on Tuesday, 16 November in Berlin.

Along with a number of enterprises which will report on their experiences, the President of the Federal Environmental Agency, Prof Dr. Andreas Troge and eco-tax experts Dr. Reinhard Loske (Bündnis 90/Die Grünen) and Michael Müller (SPD) will discuss the continuation of the ecological tax reform with representatives of politics, non-governmental organisations and trade associations.

More information is only provided on the German website.

Ecologic organises this event on behalf of the Federal Environmental Agency.

All logos and trademarks in this site are property of their respective owner.
© Copyright by Ecologic gGmbH,
see also Legal / Disclaimer / Impressum
Please contact us with any suggestions and comments.