Economic Instruments - Charges and taxes
Trichloroethylene (TCE) and Perchloroethylene (PER) Tax - Brief Summary (Norway)
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Trichloroethylene (TCE) and Perchloroethylene (PER) Tax, Norway
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).
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).
The tax is too new to evaluate its results, but data for 2000 indicates a decline in TCE use of about 80% (Sterner, 2003).
Sterner, T., 2003. Policy Instruments for Environmental and Natural Resource Management. RFF, Washington
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