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This paper introduces the special issue on the Policies for Ecological Tax Reform: Assessment of Social Responses (PETRAS) project about responses to ecological tax reform (ETR) in Europe.
Combining environmental with employment objectives, ecological tax reform (ETR) envisages a double dividend.
The aim is to use revenue from this "ecological tax reform" to cut soaring welfare costs, which help to make German labour among the world's dearest.
Funding for incentive-based watershed management may be derived from Brazil's "ecological" tax system, which compensates municipalities for conservation costs based on the value-added tax (ICMS) (Marques [2009]; Veiga [2008]).
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A simple qualitative criterion to design ecological taxes is also suggested.
For businesses taxes include a corporate income tax, a social security tax, a value-added tax, ecological taxes (for the use of natural resources), and property taxes.
But Hans-Olaf Henkel, the president of the Federation of Germany Industry, bitterly attacked the Greens' proposals for ecological taxes and an end to nuclear power, and said industry was "certainly nervous" about a Red-Green coalition.
The anti-ecological tax on self-produced electricity was pushed through by the conservative People's party (PP) government of Mariano Rajoy a few weeks before elections in December.
Exemptions granted to industry from Germany's "ecological" energy tax will be cut back.
There are financial, ecological, liability, tax, productivity, and aesthetic issues that should be carefully assessed.
A wholesale redistribution of wealth and a clampdown on any anti-green activity are the main objectives, stimulated by concepts such as a "Robin Hood tax", "ecological debt" and a "citizen's income".
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