Environmental tax as an instrument of economic stimulation to improve the quality of motor fuels

Abstract

Carbon dioxide (CO2) is a main component of organic fuel combustion, and its increased concentration in the atmosphere causes negative impact assumed to be associated with its contribution into the global climate change. CO2 emission is correlated both with fossil fuel consumption intensification and with toxic substances emissions in the process of fuel combustion, thus indirectly characterizing the general dynamics of pollutants impact upon environment. Motor transport is one of the major consumers of oil products. Within this context, the search for the ways to reduce СО2 emission from motor vehicles is a priority problem for the global commonwealth. Taking into account that tax stimulation is one of the most effective instruments of influence on oil-refining companies, an urgent task is to improve the existing tax system to reduce carbon dioxide emissions. The aim of this work is to substantiate a model and a method to calculate an environmental tax for motor fuel considering not only environmental classes of fuels being used but also the carbon dioxide emissions in the process of their combustion. The authors have proposed a mechanism for economic stimulation of reduction of carbon dioxide emission from motor transport. A dependence of СО2 emission on motor fuels qualitative characteristics has been disclosed and a methodological approach to calculate the environmental tax for fuel has been found. The proposed methodological approach can be used for improvement of the current system of oil products taxation in order to create incentives for manufacturers of oil products to produce environmentally-friendly fuels.