Approaches for further development of public finances

The project „Approaches for further development of public finances” addresses the question of how fiscal policy can be leveraged to improve the policy framework for sustainable economic activity. One aspect of this framework concerns the political shaping of energy prices. Numerous exemptions from taxes, levies and fees reduce energy prices, particularly those faced by manufacturing industry. Lower energy prices reduce incentives for energy efficiency as well as prices for energy intensively manufactured products. A second work package takes a look at environmentally harmful subsidies. Among others reform proposals for taxes and subsidies in transport are simulated with the model PANTA RHEI.

Publications
Großmann, A. & Lutz, C. (2017): Economic effects of reforming energy tax exemptions for the industry in Germany. , In: Weishaar, S. E., Kreiser, L., Milne, J. E., Ashiabor, H. & Mehling, M. (eds.): The Green Market Transition. Carbon Taxes, Energy Subsidies and Smart Instrument Mixes. Critical Issues in Environmental Taxation, Vol. XIX, pp. 128-142, Edward Elgar. http://dx.doi.org/10.4337/9781788111171