Green taxes 2011

Green taxes are taxes imposed on activities that are harmful for the environment so that businesses and individuals must take into account the environmental cost of their activities on society.

Green taxes are taxes imposed on activities that are harmful for the environment so that businesses and individuals must take into account the environmental cost of their activities on society. The environment is a public good that businesses and households generally use for free. Businesses and households are not confronted with prices that reflect the environmental cost of production and consumption on society in the form of impaired environment, loss of environmental quality, and in some cases irreversible damage to the life-supporting ecological processes. The consequence is an over-consumption of environmental resources. This stands in contrast to the use of, among other things, labour and capital, where companies are facing market-clearing prices. By impose an environmental equivalent to the damage imposed environment, the framework changes and companies and households will face the appropriate costs of production and consumption.

Table 1 gives an overview of the green taxes in Norway in 2011 and table 2 gives more detailed information about the CO2-tax.

Table 1: Green taxes. 2011

Tax

Tax rate

Estimated revenue 2011.
Mill. NOK

Introduced

Tax on CO2 emissions in petroleum activities on the continental shelf

varies, se table 2

2300

1991

Road usage tax on petrol, NOK/litre

7250

1933

Sulphur-free

4.62

Low sulphur

4.66

Road usage tax on auto diesel, NOK/litre

9400

1993

Sulphur-free

3.62

Low sulphur

3.67

Biodiesel

1,81

Lubrication oil tax, NOK/litre

1.83

105

1988

CO2-tax

varies, se table 2

4755

1991

Sulphur tax, NOK/litre per started 0,25 per cent weight share sulphur

0.076

50

1970

Tax on the final treatment of waste at landfill NOK/tonne

230

1999

biodegradable waste with dispensation

463

other waste delivered

280

Tax on health- and environmentally damaging chemicals

2000

Trichloreten, NOK/kg

63.18

2

Tetrachloreten, NOK/kg

63.18

2

Tax on greenhouse gasses HFC and PFC, NOK/tonne CO2 -equivalents

212

222

2003

Tax on emissions of NOX, NOK/kg

16.43

69

2007

Environmental tax on pesticides

Varies

66

1998

Base-tax on disposable packaging, NOK/unit

1.04

858

1994

Environmental tax on beverage packaging

1973

Carton and cardboard, NOK/unit

1.26

172

Plastics, NOK/unit

3.05

47

Metals, NOK/unit

5.06

143

Glass, NOK/unit

5.06

63

Sum environmental taxes

25 734

 

 

 

 

Electricity tax

7 700

1951

General rate, NOK/kWh

0.1121

Low rate (manufacturing), NOK/kWh

0.0045

Base-tax on mineral oil

1 700

2000

General rate, NOK/litre

0.983

Low rate (paper and pulp, dyes and pigments), NOK/litre

0.126

Sum environmental and energy related taxes

35 134

 

 

 

 

Motor vehicle registration tax

Varies

19 700

1955

Annual tax on motor vehicles

Varies

8 900

1917

Annual weight-based tax on vehicles

Varies

342

1993

Tax on marine engines NOK/hk

153

233

1978

Sum taxes that can influence the environment

64 309

Source: Ministry of Finance

 

Table 2: CO2-tax.2011 

 

Tax rates

NOK/litre, NOK/kg or NOK/Sm3

Tax rates

NOK/tonne CO2

Petrol

0.88

380

 

 

 

Mineral oil

High tax rate (domestic aviation)

0.69

Jet kerosene

270

General tax rate

0,59

Light fuel oil, diesel

222

Heavy fuel oil

188

Low tax rate (paper and pulp industry and fishmeal industry not covered by the emission trading scheme)

0.31

Light fuel oil, diesel

116

Heavy fuel oil

99

 

 

 

Gas for inland usage

Natural gas

General rate

0.44

221

Low rate (industry/mining and emissions covered by the emission trading scheme)

0,05

25

LPG

0.66

220

 

 

 

Petroleum activities

Light fuel oil, diesel

0.48

180

Heavy fuel oil

0.48

153

Natural gas

0.48

205

Source: Statistics Norway and Ministry of Finance