{"id":55707,"date":"2023-12-01T18:48:57","date_gmt":"2023-12-01T17:48:57","guid":{"rendered":"https:\/\/www.wifo.ac.at\/publication\/aspects-of-environmentally-beneficial-tax-incentives-a-literature-review\/"},"modified":"2025-07-08T17:47:02","modified_gmt":"2025-07-08T15:47:02","slug":"aspects-of-environmentally-beneficial-tax-incentives-a-literature-review","status":"publish","type":"publication","link":"https:\/\/www.wifo.ac.at\/en\/publication\/55707\/","title":{"rendered":"Aspects of Environmentally Beneficial Tax Incentives. A Literature Review"},"content":{"rendered":"","protected":false},"featured_media":0,"template":"","class_list":["post-55707","publication","type-publication","status-publish","hentry"],"acf":{"subtitle":"","text":"While environmental taxes aim at making environmentally harmful behaviour more costly, the opposite is true for environmentally beneficial tax incentives. Tax incentives imply foregone public revenues to favour less polluting consumption and investment activities in order to achieve environmental policy goals. While there is a large body of theoretical literature on environmental taxes and emissions trading, the theoretical literature on environmentally beneficial tax incentives (as well as direct subsidies) is rather slim. Most of the literature in the field of beneficial tax incentives consists of empirical case studies on concrete tax incentives that have been introduced in individual countries. The paper provides a review of theoretical and empirical literature addressing the effects of environmentally beneficial tax incentives. Hereby, the review of empirical evidence on the impact of specific tax incentives to reduce greenhouse gas emissions focuses on tax incentives in the transport sector and particularly on those attached to vehicle taxation aiming at supporting the decarbonisation of the car fleet. We also summarise the sparse empirical evidence on tax incentives intended to support the use of public transport, green R&amp;D, and energy efficiency.","onlinedate":"2021-02-04 12:00:00","lang":"English","publication_series":"","publication_date":"20210101","publication_date_year":"","publication_date_full":false,"publication_num_pages":"22","keywords":"[\"Carbon taxation\",\"climate policy\",\"environmental taxation\",\"price-based instruments\",\"tax incentives\"]","jelcodes":"[]","related_publications":"[]","pdf":428477,"zip":null,"link":"","monthly_report":true,"monthly_report_main":false,"monthly_report_volume":"","monthly_report_pages":"","monthly_report_pages_sort":"0","issue":"621","journal":"WIFO Working Papers","publisher":"","invisible":false,"external":false,"embargo_date":"2021-02-04 12:00:00","types":[44410],"research_groups":[3655,3500],"collaboration":"","persons":[3671,3830],"persons_data":"[{\"personId\":3671,\"personName\":\"Angela K\u00f6ppl\",\"organisationNames\":[]},{\"personId\":3830,\"personName\":\"Margit Schratzenstaller\",\"organisationNames\":[]}]","clients":[10646],"subclients":[],"partners":[8870,8936],"topics":[41019,40961],"host_publication_title":"","host_publication_subtitle":"","place_of_publication":"","host_publication_editors":"[]","type_description":"","output_media":"","chapter":"","article_number":"","citations":"{\"apa\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_apa rendering_contributiontoperiodical rendering_apa rendering_contributiontoperiodical_apa\\\"><span>K\u00f6ppl, A.<\\\/span><span>, &amp; Schratzenstaller, M.<\\\/span> (2021). <span>Aspects of Environmentally Beneficial Tax Incentives. A Literature Review<\\\/span>. <span><em>WIFO Working Papers<\\\/em><\\\/span>, (621). <a onclick=\\\"window.open(this.href, '_blank','noopener,noreferrer'); return false;\\\" href=\\\"https:\\\/\\\/www.wifo.ac.at\\\/wwa\\\/pubid\\\/66860\\\" class=\\\"link\\\"><span>https:\\\/\\\/www.wifo.ac.at\\\/wwa\\\/pubid\\\/66860<\\\/span><\\\/a><\\\/div>\",\"vancouver\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_vancouver rendering_contributiontoperiodical rendering_vancouver rendering_contributiontoperiodical_vancouver\\\"><span>K\u00f6ppl A<\\\/span><span>, Schratzenstaller M<\\\/span>. <span class=\\\"title\\\"><span>Aspects of Environmentally Beneficial Tax Incentives. A Literature Review<\\\/span><\\\/span>. <span>WIFO Working Papers<\\\/span>. 2021 Jan;(621).<\\\/div>\",\"bibtex\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_bibtex rendering_contributiontoperiodical rendering_bibtex rendering_contributiontoperiodical_bibtex\\\"><div>@misc{6b94ec1b3b4a41cf8f441278225dbdca,<\\\/div><div>  title    = \\\"Aspects of Environmentally Beneficial Tax Incentives. A Literature Review\\\",<\\\/div><div>  abstract = \\\"While environmental taxes aim at making environmentally harmful behaviour more costly, the opposite is true for environmentally beneficial tax incentives. Tax incentives imply foregone public revenues to favour less polluting consumption and investment activities in order to achieve environmental policy goals. While there is a large body of theoretical literature on environmental taxes and emissions trading, the theoretical literature on environmentally beneficial tax incentives (as well as direct subsidies) is rather slim. Most of the literature in the field of beneficial tax incentives consists of empirical case studies on concrete tax incentives that have been introduced in individual countries. The paper provides a review of theoretical and empirical literature addressing the effects of environmentally beneficial tax incentives. Hereby, the review of empirical evidence on the impact of specific tax incentives to reduce greenhouse gas emissions focuses on tax incentives in the transport sector and particularly on those attached to vehicle taxation aiming at supporting the decarbonisation of the car fleet. We also summarise the sparse empirical evidence on tax incentives intended to support the use of public transport, green R\\\\&amp;D, and energy efficiency.\\\",<\\\/div><div>  keywords = \\\"Carbon taxation, climate policy, environmental taxation, price-based instruments, tax incentives\\\",<\\\/div><div>  author   = \\\"Angela K{\\\\\\\"o}ppl and Margit Schratzenstaller\\\",<\\\/div><div>  note     = \\\"Aspects of Environmentally Beneficial Tax Incentives. A Literature Review\\\",<\\\/div><div>  year     = \\\"2021\\\",<\\\/div><div>  month    = jan,<\\\/div><div>  language = \\\"English\\\",<\\\/div><div>  journal  = \\\"WIFO Working Papers\\\",<\\\/div><p>}<\\\/p><\\\/div>\",\"ris\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_ris rendering_contributiontoperiodical rendering_ris rendering_contributiontoperiodical_ris\\\"><p>TY  - GEN<\\\/p><p>T1  - Aspects of Environmentally Beneficial Tax Incentives. A Literature Review<\\\/p><p>AU  - K\u00f6ppl, Angela<\\\/p><p>AU  - Schratzenstaller, Margit<\\\/p><p>N1  - Aspects of Environmentally Beneficial Tax Incentives. A Literature Review<\\\/p><p>PY  - 2021\\\/1<\\\/p><p>Y1  - 2021\\\/1<\\\/p><p>N2  - While environmental taxes aim at making environmentally harmful behaviour more costly, the opposite is true for environmentally beneficial tax incentives. Tax incentives imply foregone public revenues to favour less polluting consumption and investment activities in order to achieve environmental policy goals. While there is a large body of theoretical literature on environmental taxes and emissions trading, the theoretical literature on environmentally beneficial tax incentives (as well as direct subsidies) is rather slim. Most of the literature in the field of beneficial tax incentives consists of empirical case studies on concrete tax incentives that have been introduced in individual countries. The paper provides a review of theoretical and empirical literature addressing the effects of environmentally beneficial tax incentives. Hereby, the review of empirical evidence on the impact of specific tax incentives to reduce greenhouse gas emissions focuses on tax incentives in the transport sector and particularly on those attached to vehicle taxation aiming at supporting the decarbonisation of the car fleet. We also summarise the sparse empirical evidence on tax incentives intended to support the use of public transport, green R&amp;D, and energy efficiency.<\\\/p><p>AB  - While environmental taxes aim at making environmentally harmful behaviour more costly, the opposite is true for environmentally beneficial tax incentives. Tax incentives imply foregone public revenues to favour less polluting consumption and investment activities in order to achieve environmental policy goals. While there is a large body of theoretical literature on environmental taxes and emissions trading, the theoretical literature on environmentally beneficial tax incentives (as well as direct subsidies) is rather slim. Most of the literature in the field of beneficial tax incentives consists of empirical case studies on concrete tax incentives that have been introduced in individual countries. The paper provides a review of theoretical and empirical literature addressing the effects of environmentally beneficial tax incentives. Hereby, the review of empirical evidence on the impact of specific tax incentives to reduce greenhouse gas emissions focuses on tax incentives in the transport sector and particularly on those attached to vehicle taxation aiming at supporting the decarbonisation of the car fleet. 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