1. Environmental tax reform: Preliminary results of survey in the Czech Republic II Petr Šauer, Ondřej Vojáček 7 th EUROPEAN FORUM FOR SCIENCE AND TECHNOLOGY PRAGUE, MAY 22, 2008 The project „Resource Productivity and Environmental Tax Reform in Europe (petrE)“ is kindly funded by the Anglo-German Foundation.

2. Aim of the project  Methodology:  Qualitative research  Stakeholders public administration industry representatives labor unions NGOs  I stage ETR implementation - experience of administration and industry  Identification of main practical obstacles  ETR results (environmental stimulus) and ETR understanding  Recommendations for the implementation process in the Czech Republic and CEE countries

3. Basic facts  Charges since 60´s  Half 90´s ETR studies – concepts  Taxes X Charges (Traditional understanding X CR) Phase I of ETR - Since 2008 Phase II of ETR – Since 2009? Phase III of ETR – Since 2012??  ETR I – implementation of the 2003/96/ES directive (not all the possible exemptions used)  New consumption taxes imposed on: natural gas (264,80 Kč/MWh of the combustion heat), fossil solid fuels (coal, coke) (8,50 Kč/GJ of the combustion heat) electricity (28,30 Kč/MWh) (price increased by 1%)

4. Our research focus  ETR Revenue – how to spend revenues  Problematic areas of ETR implementation in the Czech Republic  Tax rate foundation (what should be the tax rates based on)  ETR and it´s ideas perception by different stakeholders?

5. Preliminary results II  ETR I No „PR“ No discussion with relevant stakeholders No main goal of ETR broadly claimed No tax lowering (fiscal neutrality) No significant impact of Phase I  ETR II Further ET increase politically not acceptable ETR as brainstorming (env. policy focused on Czech env. problems) Problem focused environmental policy instrument mixture  ETR long term stimulus for industry not exist (is solved ad hoc; EU as well)  Skepticism towards stimulative functions of taxation  Revenue usage in the environment  ETR and ETS relations/integration

6. Wish you a lot of energy savings in coming air conditioning period University of Economics, Prague Department of Environmental Economics sauer@vse.cz ovojacek@seznam.cz