Is the Post-Lockdown a Good Timing for Introducing an Environmental Tax?

Fiscalità e Commercio Internazionale, 10/2020

2 Pages Posted: 25 Oct 2020

See all articles by Amedeo Rizzo

Amedeo Rizzo

Bocconi University; University of Oxford - Faculty of Law

Erika Scuderi

WU - Institute for Austrian and International Tax Law

Date Written: October 8, 2020

Abstract

The COVID-19 pandemic seems to have eclipsed the environmental crisis. Of course, priorities on the European (and international) political agenda have radically changed due to the dramatic health emergency and its devastating economic effects. The sharp reduction in global economic activity during the lockdown led, in turn, to some unintentional, albeit temporary, environmental improvements that are expected to be frustrated as soon as the economy takes off again.

This exceptional scenario could serve as a blank canvas on which to draw a sustainable economic recovery shaping efficient tax measures on the objectives outlined in the European Green Deal. However, we should not make the mistake of burdening the most disadvantaged segment of the population: well-designed environmental taxes should, therefore, be levied on goods and activities that have available and affordable green substitutes. This way, corrective taxes would be more efficient in fulfilling their environmental objective, fairer because poorer households could opt for the non-polluting alternative, and they would help avoid the rebound of emission levels in the post-crisis scenario.

Keywords: Environmental taxation, COVID-19, international taxation

Suggested Citation

Rizzo, Amedeo and Scuderi, Erika, Is the Post-Lockdown a Good Timing for Introducing an Environmental Tax? (October 8, 2020). Fiscalità e Commercio Internazionale, 10/2020, Available at SSRN: https://ssrn.com/abstract=3713306

Amedeo Rizzo (Contact Author)

Bocconi University ( email )

Via Sarfatti, 25
Milan, MI 20136
Italy

HOME PAGE: http://didattica.unibocconi.eu/mypage/index.php?IdUte=210403&idr=&lingua=eng

University of Oxford - Faculty of Law ( email )

St Cross Building
St Cross Rd
Oxford
United Kingdom

Erika Scuderi

WU - Institute for Austrian and International Tax Law ( email )

Vienna
Austria

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