Gradual Introduction of Coercive Instruments in Climate Policy
CRITICAL ISSUES IN ENVIRONMENTAL TAXATION INTERNATIONAL AND COMPARATIVE PERSPECTIVES, N. Chalifour, J.E. Milne, H. Ashiabor, K. Deketelaere & L. Kreiser, eds., Oxford University Press, Vol. 5, pp. 53-74, 2008
26 Pages Posted: 11 Oct 2006 Last revised: 18 Sep 2009
Date Written: October 1, 2006
This paper is about acceptance building, i.e. devising a mechanism for the gradual preparation of the citizenship and the economy in order to implement a carbon tax. It draws from the experiences made in Switzerland, where voluntary approaches were combined with a CO2 tax. More generally, this paper is about the dynamics of climate policy in a democracy, where law making is always participatory. It analyses the genesis of the Swiss CO2 Law, in particular the history of an earlier aborted proposal, to show the setting up of a peculiar strategic approach that spawned an array of voluntary approaches. The approach seemed about to succeed in creating sufficient support for the carbon tax. However, a last minute proposal of a private levy on fuel prices upset everything and seems about to fully undermine the CO2 Law. We interpret what went wrong and attempt to draw general lessons for climate policy.
Keywords: Climate policy, climate change, economic instruments, voluntary approaches, carbon tax, CO2 tax, acceptability
JEL Classification: H2, H3, Q2, Q4
Suggested Citation: Suggested Citation