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Biofuels for better climate: How is the tax exemption being used?; Biodrivmedel foer baettre klimat: Hur anvaends skattebefrielsen?

Technical Report:

Abstract

The National Audit Office has audited the tax exemption for biofuels. Grounds for review: Since 1995, the Government may decide on tax credits or exemptions for biofuels. The purpose of the exemption is to contribute to technology development towards more environmentally friendly fuels that include reducing greenhouse gas emissions from transport. Although it proved difficult to reduce emissions from transport it has not been investigated if a tax exemption for biofuels is the best way to reduce these emissions. Previous studies have shown that the exemption is both expensive and a blunt instrument. Recently the cost of tax exemption has increased significantly and there is a risk that this increase is continuing. Audit objective: The review has focused on examining to what extent and at what cost the tax exemption for biofuels contributes to achieving climate targets. The focus of the review is how the tax exemption for biofuels has been designed and managed, including in relation to other instruments, and what problems and risks that it entailed. A pure impact evaluation has not been possible to do since the exemption is not the only project which aims to increase use of biofuels. Audit Implementation: National Audit Office has reviewed  More>>
Publication Date:
Feb 15, 2011
Product Type:
Technical Report
Report Number:
RiR-2011-10
Resource Relation:
Other Information: 130 refs., 16 figs., 39 tabs.
Subject:
09 BIOMASS FUELS; BIOFUELS; GREENHOUSE GASES; ENVIRONMENTAL IMPACTS; CLIMATIC CHANGE; FINANCIAL INCENTIVES; AUDITS; AUTOMOBILES; COST BENEFIT ANALYSIS
OSTI ID:
1010776
Research Organizations:
Swedish National Audit Office, Stockholm (Sweden)
Country of Origin:
Sweden
Language:
Swedish
Other Identifying Numbers:
Other: ISBN 978 91 7086 247 2; ISSN 1652-6597; TRN: SE1107056
Availability:
Available from: http://www.riksrevisionen.se
Submitting Site:
SWD
Size:
140 p. pages
Announcement Date:
Apr 11, 2011

Technical Report:

Citation Formats

None. Biofuels for better climate: How is the tax exemption being used?; Biodrivmedel foer baettre klimat: Hur anvaends skattebefrielsen?. Sweden: N. p., 2011. Web.
None. Biofuels for better climate: How is the tax exemption being used?; Biodrivmedel foer baettre klimat: Hur anvaends skattebefrielsen?. Sweden.
None. 2011. "Biofuels for better climate: How is the tax exemption being used?; Biodrivmedel foer baettre klimat: Hur anvaends skattebefrielsen?" Sweden.
@misc{etde_1010776,
title = {Biofuels for better climate: How is the tax exemption being used?; Biodrivmedel foer baettre klimat: Hur anvaends skattebefrielsen?}
author = {None}
abstractNote = {The National Audit Office has audited the tax exemption for biofuels. Grounds for review: Since 1995, the Government may decide on tax credits or exemptions for biofuels. The purpose of the exemption is to contribute to technology development towards more environmentally friendly fuels that include reducing greenhouse gas emissions from transport. Although it proved difficult to reduce emissions from transport it has not been investigated if a tax exemption for biofuels is the best way to reduce these emissions. Previous studies have shown that the exemption is both expensive and a blunt instrument. Recently the cost of tax exemption has increased significantly and there is a risk that this increase is continuing. Audit objective: The review has focused on examining to what extent and at what cost the tax exemption for biofuels contributes to achieving climate targets. The focus of the review is how the tax exemption for biofuels has been designed and managed, including in relation to other instruments, and what problems and risks that it entailed. A pure impact evaluation has not been possible to do since the exemption is not the only project which aims to increase use of biofuels. Audit Implementation: National Audit Office has reviewed the Government's decision on tax breaks for biofuels for the period 1995-2009 and the Energy Agency monitoring of the tax exemption for the same period. National Audit Office has also, with the help of Statistics Sweden, conducted a survey of owners of green cars to investigate what factors are important for the choice to buy a green car and the choice of fuel. To illustrate how exemptions affect the use of biofuels and how much the use of biofuels helps reduce emissions, the National Audit Office compiled the existing data and perform calculations. The audit has also been supplemented with interviews in the Cabinet Office and the Energy Agency, an analysis of propositions and other materials and a review of relevant EU legislation on the basis of EU law expertise. The review has resulted in the following major conclusions and observations: A tax exemption for biofuels contributes to achieving Parliament's climate goals - but not at a reasonable cost; The government's handling of the exemption has not resulted in long-term and predictable conditions; Tax exemptions for biofuels results in side effects - or counteracting effects; The government's monitoring of the exemption has been inadequate and insufficient; The exemption has no prerequisites to be sustainable in the long term}
place = {Sweden}
year = {2011}
month = {Feb}
}