Rosenstock, Manfred --- "Energy Taxation within the EU" [2006] ELECD 437; in Peeters, Marjan; Deketelaere, Kurt (eds), "EU Climate Change Policy" (Edward Elgar Publishing, 2006)

Book Title: EU Climate Change Policy

Editor(s): Peeters, Marjan; Deketelaere, Kurt

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781845426057

Section: Chapter 13

Section Title: Energy Taxation within the EU

Author(s): Rosenstock, Manfred

Number of pages: 16

Extract:

13. Energy taxation within the EU
Manfred Rosenstock1

1. ENviroNmENtal PoliCY iN tHE EU
Environmental policy at European Community (Community) level has been
developed since the 1970s. its main instrument has traditionally been technical
regulation.2 in recent years, however, the European Commission (the Commis-
sion) has proposed to complement this approach by expanding the use of
market-based instruments (mBi),3 such as environmental taxes, emissions trad-
ing and incentives. the Council and the European Parliament have supported
this approach in strategic documents, such as the 6th Environmental action
Programme, where an intensified use of mBi is also demanded.4
Given the importance of the climate change issue and the key role of energy
in our economy, Community activities to pursue the increased use of mBi have
focused on energy-related areas. Prime examples are the European Emissions
trading scheme for greenhouse gases (Ets),5 but also the directive on the taxa-
tion of energy products.6 it should, however, not be forgotten that some
provisions on the use of economic instruments can also be found in Community
environmental legislation relating to non-energy areas (cf. below, section 4 of
this chapter).
the argument for an increased use of economic instruments rests on the fact
that they are, in the majority of cases, the most efficient means to curb pollution
and encourage energy efficiency as they ensure the internalization of external
costs in the prices of goods and services. at the same time, they provide industry
with a flexible ...