Insights in Political Processes on the Ecological Tax Reform from a Ministerial Perspective

Abstract

Firstly, the paper describes and compares the evolution — in theory — and the application in practice of various market-based approaches and instruments, inter alia the Ecological Tax Reform (ETR). Secondly, it provides insights in the history and the more than 20 years of debate on a potential ETR in Germany. Thirdly, the design and the phase of implementation of the ETR in Germany from 1999 on are described and analysed. Fourthly, the manifold and ambivalent experiences with the ETR are presented. Finally, conclusions for political considerations, design, implementation and marketing aspects are drawn.KeywordsEconomic Policy AdviceEnvironmental PolicyEconomic Environmental Policy ApproachesEconomic Environmental Policy InstrumentsTax PolicyEcological Tax Reform