Economic Instruments - Charges and taxes

Water Effluent Charge - Brief Summary (France)

Design

Scope

Charges on domestic and non-domestic water discharges were introduced by water basin authorities

Monitoring and Enforcement

Non-domestic discharges are controlled through water quality permits which sets limits on the concentration and volume of effluent, firms need to acquire a permit prior to any discharge into water; charges apply to any source discharging ‘at least the equivalent of a population of 200,'(OECD 1997, pp40)

Rates

Charges vary for different substances and charges are based on permits, but can be based on direct-measurements at the request of the forms or authorities (OECD 1997, pp40)


Performance

According to a 1989 OECD the charges were originally too low to create an incentive effect, but a proposed increase of 146% between 1992 and 1996 is expected to increase the incentive effect (OECD 1997, pp40)

‘industrial emissions of oxygen binding substances, suspended solids and heavy metals decreased by 28%, 38% and 39% respectively in the period 1980-1992,' (EEA 1996, pp58)

Annual revenue of 9.4 billion francs (Tindale & Holtham 1996, pp29) which is reinvested in water management (Barde & Smith 1997, pp24)

Incentive effect unclear, but probably low (Barde & Smith 1997, pp24)


References

Do Economic Instruments Help the Environment?Barde & Smith, The OECD Observer, No.24, Feb/Mar 1997, pp22-26 http://www.oecd.org//publications/observer/209/ART_IDXE.HTM

Evaluating Economic Instruments for Environmental Policy, OECD 1997, pp39-40 (order form at http://www.oecd.org//env/policies/publications.htm#eistrpub)

Green Tax Reform, Pollution Payments and Labour Tax Cuts, S Tindale and G Holtham, Institute For Public Policy Research, London ,1996, pp29

Environmental Taxes: Implementation and Environmental Effectiveness (Environmental issues Series No.1), European Environment Agency, Copenhagen 1996, pp58


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Posted by admin on 14/06/08

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