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Table 2 The compensation principle and energy taxation in European countries. Source (Harnay, Reme, 2012)
Country | Compensation principle | Taxation system |
|---|---|---|
Sweden | Reduction in the original energy tax, income tax for households and some social contributions on work. | The carbon tax is part of a system that includes 3 other taxes (sulphur, nitrogen, energy). |
Denmark | Income tax reduction and taxes on work | A tax on petrol, coal, electricity and sulphur |
Finland | Reduction in income tax and employers’ contributions for work | An energy tax and a tax on oil products |
Germany | Reduction in employees’ and employers’ contributions particularly for pensions | Tax on oil products, tax on heavy, and light fuel oil, natural oils, and electricity (but not coal) |
United Kingdom | Reduction in employers’ contributions for work | Very high tax on oil products and a tax on electricity |
Proposal for France | Tax credits or green cheques | Tax on oil products for some sectors such as road freight transport, and on natural gas, electricity and coal (at a lower level). |