Fiscal aspects of the Energy Transition
Relative prices of different energy carriers are affected by a number of fiscal instruments. At this event, we will hold a discussion on, how fiscal instruments can be adjusted to better accommodate the energy transition.
VIDEO & AUDIO RECORDINGS
The volume and type of energy we consume strongly reacts to the price of different forms of energy (e.g., gasoline, heating oil, electricity, …). Those prices are affected by a number of fiscal instruments on the consumer side (e.g., fuel and electricity taxes) and the producer side (emission permits but also subsidies). Hence fiscal policies are an important driver for energy consumption and production patterns, which vary widely in the EU. There is some concern that the legacy fiscal system is incompatible with certain aspects of the energy transition. For example, high taxes on electricity might hinder electrification – which is conceived as a main route to heating and transport decarbonisation. At the same time, fiscal policies and other policies (e.g., deployment or emission standards) interact.
So there is a question on the effectiveness of the resulting policy mix. Based on a new book edited by I.Parry (IMF), K. Pittel (ifo), and H.Vollebergh (PBL) we would like to discuss how fiscal instruments can be adjusted to better accommodate the energy transition.
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Karen Pittel, Director of the ifo Center for Energy, Climate and Exhaustible Resources, ifo Institute
Director General at DG Climate Action, European Commission
Director of the ifo Center for Energy, Climate and Exhaustible Resources, ifo Institute
Principal Environmental Fiscal Policy Expert, IMF's Fiscal Affairs Department
Director, Market Operations, Uniper
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