Maarten Dubois 9 february 2012 Introduction EEEN Methodological choice Sideeffects C ombustible waste Why is combustible waste a challenging domain for cohesive policy How do European policies currently deal with combustible waste ID: 314891
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Towards cohesive taxation policies for combustible waste in Europe
Maarten Dubois9 february 2012Slide2
Introduction
EEENMethodological choiceSide-effectsCombustible waste
Why is combustible waste a challenging domain for cohesive policy? How do European policies currently deal with combustible waste?How can environmental economics contribute to policy assessment?Slide3
Multi-dimensional
Interaction energy, resource and waste policiesRenewable energy subsidiesTechnologyPre – and post treatmentIncineration RecyclingSlide4
Diversity in waste streams
Source: ECN Phyllis database for biomass and waste Slide5
Challenging domain
Combustible wasteInteraction of different policy domainsDiversity of technologies and waste streamsDynamic environment=> a one-fits-all policy is neither efficient nor sustainable
Policy makersImportant taskLimited resourcesInstruments usedTaxesSubsidiesbansSlide6
Current policy
Implementation of European Waste Directive Market for combustible waste liberalizedExceptions possible for municipal wasteFree trade calls for a level playing fieldHeterogeneous European policies
Incineration taxYes: Flanders, Wallonia, France (+-10 % of price)No: Netherlands, Germany, UK Yes but no: Sweden and NorwayCo-incineration: sometimesLandfill tax for ashes: sometimesNo cohesive European policy & no level playing fieldSlide7
Environmental economics
Efficieny and market failuresFocus on externalitiesEnvironmental damageMeasurableMonetary valueMarket Based Instruments
Taxes and subsidiesSlide8
Stylized diagramSlide9
Stylized diagram with instrumentsSlide10
Incineration tax
Proxy for local air pollutionMonetary value for local air pollutionMonthly emission averages per plant available
Tax competitionIncineration tax as incentive for ‘clean operations’FranceSlide11
EU ETSIndustrial carbon emissions in EU ETS
Co-incinerationWaste incinerationIndustrial point source of carbon emissionsIntegration of waste incineration in EU ETSEU level playing fieldSlide12
Landfill tax
Non bis in idemFlanders and FranceExemption of landfill tax for ash residuesMixing activity and externalityLandfill tax for incineration residuesIncentives for prevention and recycling of ashes
F.e. plasma incineration, pre-treatment, co-incineration,…Slide13
Energy subsidies for waste
PositiveEnergy subsidies stimulate WtEEnergy subsidies should be based on electricity produced not on theoretical factor of ‘efficiency recovery’NegativeEnergy subsidies decrease incentives to recycle waste
Energy subsidies should correspond to the external benefitSlide14
Conclusions
Economic methodology: Focus on externalitiesMarket Based Instruments Cohesive policy in a diverse and dynamic marketIllustration combustible wasteIncineration tax as an incentive to reduce local air pollutants
Waste incineration in EU ETSLandfill tax as an incentive to reduce incineration residues going to disposal