VanderWolk, Jefferson --- "Green Tax Measures for Hong Kong: A Policy Proposal" [2011] ELECD 726; in Cullen, Richard; VanderWolk, Jefferson; Xu, Yan (eds), "Green Taxation in East Asia" (Edward Elgar Publishing, 2011)

Book Title: Green Taxation in East Asia

Editor(s): Cullen, Richard; VanderWolk, Jefferson; Xu, Yan

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781849803007

Section: Chapter 3

Section Title: Green Tax Measures for Hong Kong: A Policy Proposal

Author(s): VanderWolk, Jefferson

Number of pages: 20

Extract:

3. Green tax measures for Hong Kong:
a policy proposal
Jefferson VanderWolk

1. INTRODUCTION

In this chapter, I will discuss green taxation1 in Hong Kong from a policy
perspective. After surveying the relevant legal and tax landscape, I will
turn to policy proposals for the immediate future. Specifically, I will
argue that the Hong Kong government should consider introducing well-
designed tax measures related to the use of fossil fuels in the energy and
transport sectors, and to the use of water. The benefits of these measures
could be significant, including the broadening of Hong Kong's tax base,
a reduction of taxes on desirable economic activity, enhancement of
Hong Kong's competitive position in the region, and improvement of the
environment.


2. GLOBAL TRENDS

The use of tax measures to help address climate change and other environ-
mental factors is increasing worldwide. Carbon taxes have been enacted in
several European countries including Ireland and all of the Scandinavian
countries, and also in Quebec and British Columbia.2 In 2009, carbon


1 The phrase "green taxation" in this chapter includes not only Pigouvian

taxes on negative externalities but all types of tax rules related either directly or
indirectly to environmental factors such as emissions from the burning of fossil
fuels, waste disposal, the use of water and other natural resources, traffic conges-
tion, aircraft noise, and so on.
2 Pakistan enacted a carbon tax in June 2009 but its implementation has been

suspended by the country's Supreme Court. The ...