Circulation Tax Research Articles

Incentive effect of tax preferences towards the technological innovation of enterprises--Based on China's GEM listed companies.

The long R&D process, the high risk, and the externalities of technological innovation are challenges that enterprises have to meet when making decisions on R&D investment. Governments share this risk with enterprises through preferential tax policies. We summarized China's preferential tax policies related to enterprises and R&D innovation, and used panel data of listed enterprises from 2013 to 2018 in the Growth Enterprises Market (GEM) of the Shenzhen Stock Exchange to explore the incentive effects of current tax policies on the R&D innovation of enterprises. Through empirical analysis, we found that tax incentives significantly motivate R&D innovation input and promote output. In addition, we found that the income tax incentives are greater than that of the circulation tax, since the profitability of enterprise has a positive correlation with R&D investment. Meanwhile, the size of the enterprise is negatively correlated with the intensity of R&D investment.

The Impact of Circulation Tax Incentives for Clean Cars: A Study of Policies to Reduce CO2 Emissions and Increase Fuel Efficiency in Switzerland

The Impact of Circulation Tax Incentives for Clean Cars: A Study of Policies to Reduce CO2 Emissions and Increase Fuel Efficiency in Switzerland

The Rebound Effect of Swiss Circulation Tax Incentives for Fuel-Efficient Cars

The Rebound Effect of Swiss Circulation Tax Incentives for Fuel-Efficient Cars

Audit Reform, Local Government Intervention and Tax Burden of State-owned Enterprises

The tax burden of state-owned enterprises has been widely disputed under the intervention of the government, and the tax collection and management audit can effectively restrain the intervention of local governments. Therefore, this paper theoretically analyzes the impact of audit management system reform on the tax burden of state-owned enterprises and the mechanism of action. The research shows that the audit reform has a catalytic effect on reducing the tax burden of local state-owned enterprises, which is mainly reflected in the reduction of the circulation tax burden of local state-owned enterprises, and the reduction of the tax burden of state-owned enterprises by reducing the degree of local government intervention.

The role of environmental awareness and knowledge in the choice of a seated electric scooter

This paper presents a study aimed at estimating the role of latent variables when choosing between a seated electric scooter (SES) and a conventional one. As a modeling framework, we opted for the hybrid mixed choice model since it allows the possibility of jointly evaluating the impact of the economic and technical features of the scooter and latent factors on scooter choice, thus gaining a more realistic representation of the choice process. For the latent variables, we focused on concern for the environment and scooter knowledge. We developed a questionnaire specifically targeted at gathering data on choices and indicators capturing the latent variables and surveyed 413 respondents living in the city of Trieste, Italy, who were as diversified as possible in terms of age, education, and profession. The main finding was that besides various financial and technical scooter features (e.g., purchase price, fuel economy, annual cost of circulation tax and insurance premium, driving range, engine power, removable battery, and manufacturer’s country), a higher level of concern for the environment particularly at the local level positively influenced the choice of an SES, while SES knowledge did not play a statistically significant role.

The Effectiveness of Environmental Taxes in Reducing CO2 Emissions in Passenger Vehicles: The Case of Mediterranean Countries.

The transport sector is the biggest source of CO2 emissions in Europe. It is responsible for over a quarter of all greenhouse gas emissions. Passenger vehicles, alone, account for nearly 41% of these emissions, resulting in human health impacts. To meet the Paris climate commitments, cars and vans should be decarbonized until 2050. Such a transformation requires general changes, such as how the vehicles are owned, taxed, and driven. The European Federation for Transport and Environment revealed that Mediterranean countries tend to emit less per vehicle compared to the northern and central Europeans. Intriguingly, this does not necessarily correspond to motorization rates. In this article, we assess whether the observed reductions in CO2 emissions in the Mediterranean countries can be attributed to vehicle taxation on CO2 emissions. We apply panel data econometric techniques using data on annual registrations from 2008 to 2018 and model the demand for new-vehicle purchases and their responsiveness to changes in both CO2-based taxation and circulation tax. Our results show the determinants of new-vehicle demand and the change in the emissions rate in each country under the taxation currently adopted. We found that fiscal policies can have an important role in reducing the emission in the Mediterranean countries.

The characteristics of the demand for electric scooters in Italy: An exploratory study

The paper illustrates a stated choice experiment aimed at understanding the main factors influencing the choice between electric and petrol scooters in Italy. A discrete choice modelling framework is used to assess the role played by the scooter's technical and financial attributes, and the respondents' socio-demographic variables. We performed a stated choice experiment with 518 respondents living in various Italian cities including Rome and Milan, where an electric scooter sharing service is active. We find that purchase price, fuel economy, annual cost of circulation tax and insurance premium, driving range, engine power, manufacturer's country and removable battery are consistently statistically significant across the different specifications. The electric scooter, however, is still characterized by a negative alternative specific constant, signaling a ceteris paribus negative perception relative to the conventional one. Although the national and local governments have undertaken actions to support electric scooters' uptake, the current consumers' preferences indicate that in Italy several non-monetary factors and a still inadequate supply limit the chances that electric scooters will extend significantly their market share.

산업특성을 고려한 기업소득 환류세제의 도입효과

산업특성을 고려한 기업소득 환류세제의 도입효과

기업소득 환류세제와 조세전략

기업소득 환류세제와 조세전략

기업소득 환류세제가 기업 재무의사결정에 미치는 영향

기업소득 환류세제가 기업 재무의사결정에 미치는 영향

Car fleet policy evaluation: The case of bonus-malus schemes in Sweden

ABSTRACTIn this paper, we evaluate the bonus-malus schemes proposed by governmental investigation in Sweden in 2014. The objective was to reach the target of maximum 95 g/km of average emissions for new car sales by 2020. Two bonus-malus schemes along with several other policies were introduced in different scenarios as measures to reach the target. The scenarios differ in design regarding bonus-malus schemes, vehicle circulation tax, clean car premiums, company car benefits tax, and fuel tax. Both private and company car segments are targeted in these scenarios. We use a nested logit model for car type choice to predict the effects of the proposed policy scenarios on Swedish new car sales. Moreover, we introduce a methodology to predict the future of car supply. Our model results show that none of the three proposed policy scenarios is successful enough to meet the average emissions target. Furthermore, although the number of electric, plug-in hybrid, and alternative fuel cars will increase, new car sales will still be dominated by fossil-fueled cars in all scenarios. The average emissions in the scenarios containing bonus-malus schemes are not lower than that of the business-as-usual scenario. However, introducing bonus-malus schemes on its own would reduce emissions showing that interacting with other non--differentiated policies counteracts their effects. Moreover, bonus-malus schemes are predicted to give a budget surplus effect.

The effect of registration taxes on new car sales and emissions: Evidence from Switzerland

In Switzerland, the annual circulation taxes on road vehicles are set by and paid to the cantons (not to the federal government). We exploit the 26 different circulation tax rules and their variation over time, which we interpret as a natural experiment, to see if linking them to a vehicle’s CO2 emissions rate has helped shift new car sales towards lower-emitting vehicles. We find that even when the penalty associated with a highly polluting vehicle is high, the effect is relatively small. For example, in canton Zurich, imposing a 50% “malus” on the annual registration fee for cars that emit 200 or more grams of CO2 per kilometer reduces the average CO2 emissions rate from new cars by only 0.46g per kilometer, bringing it to 158.11g per kilometer in 2011. A similar effect would be attained with a modest increase in fuel taxes. Bonus policies may trigger new car sales and engender a net increase in CO2 emissions.

The Effect of Registration Taxes on New Car Sales and Emissions: Evidence from Switzerland

In Switzerland, the annual circulation taxes on road vehicles are set by and paid to the cantons (not to the federal government). We exploit the 26 different circulation tax rules and their variation over time, which we interpret as a natural experiment, to see if linking them to a vehicle’s CO2 emissions rate has helped shift new car sales towards cleaner, lower-emitting vehicles. We find that even when the penalty associated with a highly polluting vehicle is high, the effect is relatively small. For example, in canton Zurich, imposing a 50% “malus” on the annual registration fee for cars that emit 200 or more grams of CO2 per kilometer reduces the average CO2 emissions rate from new cars by only 0.46 gram per kilometer, bringing it to 158.11 grams per kilometer in 2011. A similar effect would be attained with a modest increase in fuel taxes.

Environmental taxation and municipal fiscal federalism: remarks and perspectives on the Italian case study

The debate around green fiscal reform has been going on for more than 20 years in Europe. However, to this day the focus has been mainly (or almost completely) concentrated on national fiscal systems, while the local dimension has been largely ignored. Environmental taxes, or at least some of them - final energy consumption taxes, car registration and circulation taxes, construction fees, park and road pricing, charges on tourism, land use and occupation fees - are strongly interrelated to the territorial context and, accordingly, can represent a promising tool to make citizens and city users pay for the services they benefit from or for the external effects they generate. From a multilevel governance perspective, whenever a process of fiscal decentralisation is going on or planned, major attention can be directed to the opportunity to fill in the fiscal gap, at least to some extent, through a major recourse to environmentally related taxes. The expected results (dividends) would not just be in terms of a less distortionary fiscal system, but also of a more transparent and accountable model of financing for local expenditures and functions. The paper provides a preliminary assessment on this subject, focusing mainly on the Italian experience. The categorization of environmental taxes and their quantitative analysis show how no specific attention has currently been given to the local dimension and how major research efforts still have to be done to better investigate their potential role in the context of decentralisation processes.

Encouraging Environmentally Friendlier Cars via Fiscal Measures: General Methodology and Application to Belgium

In this paper, a Belgian tax reform plan is elaborated to respond to the EU proposal that requires member states to restructure passenger car taxation systems, preferentially based on the CO2 emissions of the car. A tax orientation on CO2 emissions alone might however favour diesel vehicles, characterised by a higher fuel efficiency, whereas they release more polluting emissions (PM and NOx) than comparable gasoline vehicles. This paper introduces a methodology, the Ecoscore, as a potential tax assessment basis. The Ecoscore is based on a well-to-wheel framework and enables a comparison of the environmental burden caused by vehicles with different drive trains and using different fuels. A new proposal for a fixed vehicle taxation system, based on the Ecoscore, is launched. In addition, its impact on the life cycle cost of conventional as well as alternative fuelled cars is measured in order to examine its steering effect towards a cleaner vehicle choice. The overall result is that current tax distortions can be corrected by restructuring the vehicle registration tax and annual circulation tax, based on the Ecoscore. To stimulate behavioural changes, such a fiscal policy should however be paired with additional policies that act on the other important aspects that determine the car purchase decision.

Using Vehicle Taxes to Reduce Carbon Dioxide Emissions Rates of New Passenger Vehicles: Evidence from France, Germany, and Sweden

France, Germany, and Sweden have recently linked vehicle taxes to the carbon dioxide (CO2) emissions rates of passenger vehicles. France has introduced a system of CO2-based purchase taxes and subsidies, whereas Germany and Sweden impose annual circulation (i.e., registration) taxes that are linear functions of CO2 emissions rates. This paper (a) compares the effects of vehicle taxes on registrations and average emissions rates across countries and (b) estimates the effect of reducing CO2 emissions rates on manufacturers’ profits. The taxes have had a significant negative short-run effect on new vehicle registrations in all three countries, although the effect is somewhat stronger in France than in Germany and Sweden. We find little evidence that the French tax caused manufacturers to change the emissions rates of individual vehicles, however. The second part of the paper takes advantage of the theoretical equivalence between an emissions rate standard and a CO2-based emissions rate tax. We use the results from the first part to estimate the effect on manufacturers’ profits of reducing emissions rates. Focusing on France, a decrease of 5 grams of CO2 per kilometer (about 3 percent) reduces short-run profits by 10-50 euros per vehicle, depending on the manufacturer. We find considerable heterogeneity across manufactures in these costs.

THE INTERNALISATION OF EXTERNAL COSTS OF CO2 AND POLLUTANT EMISSIONS FROM PASSENGER CARS

The paper's goal is to unify practical and theoretical aspects of internalisation of external costs, in line with the “polluter pays” and “user pays” principles. Due to the impossibility of applying an ideal economic solution for internalisation of external costs, alternative solutions have to be developed and implemented. One of the possible solutions for internalisation of external costs of CO2 and pollutant emissions from passenger cars is presented in this paper. It is a new methodology for calculating annual circulation taxes on passenger cars. This methodology, besides CO2, also takes into account the pollutants whose emissions are regulated by the Euro standards (CO, HC, NOx and PM), as well as the vehicle age and kilometres driven. The proposed methodology has been tested on some of the best-selling passenger cars in Europe. The results of analysis show significant differences between our methodology and the methodologies that are used in five European countries (Ireland, the United Kingdom, Malta, Luxembourg and Sweden), which use the CO2 emissions as a reference value for their calculation. Also, we have proved that the annual circulation tax, calculated using our methodology, provide better internalisation of external costs compared to the fuel tax.

Production and logistics planning considering circulation taxes in a multi-plant seed corn company

Enterprises that experience rapid growth, changing towards multi-plant configurations, face a wide range of opportunities in terms of cost reduction in production and logistics activities. In the case of seed corn companies, splitting the industrial processes into preparing raw materials and processing dried grains can be relevant to effectively configure a logistics network, taking into account the impact of goods and services circulation taxes and additional costs of drying spikes, besides transportation cost. In this paper, we study the application of a linear programming model to support decisions in the tactical planning of production, storing and transportation of seed corn in a whole season of a typical Brazilian multi-plant seed corn company. The results showed important opportunities for production and logistics cost reduction by using the proposed model, particularly because of the consideration of tax planning. Based on these results, decision makers of the company changed some transport policies, working shifts and process conceptions.

Economic Environmental Management Tools in the Serra Do Espinhaço Biosphere Reserve

UNESCO-MAB biosphere reserves are composed of 580 sites distributed in 112 countries. The ecosystems comprising these sites are of global importance because of their biodiversity and endemism levels as well as because of their ecosystem goods and services provided. Biosphere reserves are learning sites for sustainable development. However many of them are threatened because of climate change, land use changes and environmental pollution which cause the degradation of natural resources. In order to mitigate those threats we argue that private and public policies as well as the perception of the value of natural resources by the population should be improved. The objective of the present article is to analyse the application and impacts of economic tools as the payment of ecosystem services in the management of the Serra do Espinhaço Biosphere Reserve. This area was declared biosphere reserve in June 2005, it has 3 076 457.8 ha, which includes 53 municipalities in the state of Minas Gerais (Brazil) with a total population of 3 442 906 inhabitants. Economic tools have been used to revert or compensate the impacts of a large mining exploitation area located in the transition zone of this site. The ecological ICMS (Merchandise and Service Circulation Tax) that provides the municipalities with access to funding resources according to environmental criteria is analysed. Mining is the most important economic activity in the area which is a major user of land and water resources in the region. They compensate the municipalities financially for the extraction of natural resources. Both economic tools, the ecological ICMS and mining royalties, are here proposed as elements to be used to improve the social dialogue process. The decisions related to the financial resources should be considered based on the social dialogue as well as on the scientific and monitoring data. In addition, reinforce the positive effects of the participation of stakeholders.

Promoting sustainable environmental practices amongst automobile consumers: an evaluation of the impacts of pursuing innovations in tax regulations

The growing importance of environmental sustainability has resulted in governments pursuing innovative regulatory changes in order to achieve this goal. The aim of this paper is to evaluate critically whether pursuing innovative regulations in the realm of environmental taxation have elicited more sustainable practices amongst automobile consumers in Spain. The finding is that the tax innovations of the Spanish government that seek to internalise externalities, namely the registration tax and fuel tax, but not the annual circulation tax, are leading automobile consumers to pursue more environmentally sustainable practices, and are also resulting in the automotive sector itself pursuing innovations in the form of strategic alliances to increase the level of product and process innovations so as to achieve greater environmental sustainability.