Economic Instruments - Charges and taxes

Trichloroethylene (TCE) and Perchloroethylene (PER) Tax - Brief Summary (Norway)

Trichloroethylene (TCE) and Perchloroethylene (PER) Tax, Norway

 

 

Background

Chlorinated (or halogenated) hydrocarbons such as TCE and PER are good as solvents for degreasing and dry cleaning. However they are chemically active and dissolve fats and can damage nerve cells. The use of TCE and PER increased as substitute for CFCs after they were banned, even though CFCs had originally replaced them as they were considered toxic and potentially hazardous (Sterner, 2003).


Design

Tax Rates

Since 2000, Norway has taxed TCE and PER at a rate of 50 Norwegian crowns or approx US$6/kg. This increases the market price about five times. Refunds The fee has partial deposit-refund characteristics as half of it is refunded on delivery of TCE-containing sludge for appropriate treatment. This has been seen to reduce political resistence (Sterner, 2003).


Performance

The tax is too new to evaluate its results, but data for 2000 indicates a decline in TCE use of about 80% (Sterner, 2003).


References

Sterner, T., 2003. Policy Instruments for Environmental and Natural Resource Management. RFF, Washington


Information Request

As it is the aim of this website to provide information which is as accurate, comprehensive and up-to-date as possible, please contact us with any aditional information or studies on this topic and we will add it to the website.

Email contact: louise.dunne@ucd.ie

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Trichloroethylene (TCE) and Perchloroethylene (PER) Tax, Norway

 

 

Background

Chlorinated (or halogenated) hydrocarbons such as TCE and PER are good as solvents for degreasing and dry cleaning. However they are chemically active and dissolve fats and can damage nerve cells. The use of TCE and PER increased as substitute for CFCs after they were banned, even though CFCs had originally replaced them as they were considered toxic and potentially hazardous (Sterner, 2003).


Design

Tax Rates

Since 2000, Norway has taxed TCE and PER at a rate of 50 Norwegian crowns or approx US$6/kg. This increases the market price about five times. Refunds The fee has partial deposit-refund characteristics as half of it is refunded on delivery of TCE-containing sludge for appropriate treatment. This has been seen to reduce political resistence (Sterner, 2003).


Performance

The tax is too new to evaluate its results, but data for 2000 indicates a decline in TCE use of about 80% (Sterner, 2003).


References

Sterner, T., 2003. Policy Instruments for Environmental and Natural Resource Management. RFF, Washington


Information Request

As it is the aim of this website to provide information which is as accurate, comprehensive and up-to-date as possible, please contact us with any aditional information or studies on this topic and we will add it to the website.

Email contact: louise.dunne@ucd.ie


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