OECD report hails potential of environmental taxes

Sunday, 14 June 2015, 9:10 pm
Press Release: Environmental Defence Society

OECD report hails potential of environmental taxes

EDS is pleased that an international report confirms the importance of a key strategic solution proposed in our new book Vanishing Nature.

A new report from the OECD highlights the potential of environmental taxes in New Zealand. The recommendation comes on the heels of Vanishing Nature recommending an environmental consumption tax and rebate system be introduced.

“Our research shows that fundamental economic drivers of biodiversity loss will be immensely hard to counter without novel economic institutions,” said EDS’s Senior Policy Analyst, Dr Marie Brown.

“Conservation of our natural heritage is costly and difficult, while damage is cheap and carries no consequence. The inevitable result of this is a lack of resilience and diminishing prosperity.

The OECD report OECD Economic Surveys New Zealand’ (June 2015) provides an overview of risk areas for sustaining economic growth. One of these is identified as ‘rising environmental pressures’. Environmental taxes are highlighted as a potential source of revenue to address key challenges and make the overall tax system more equitable.

“The OECD report recommends implementation of land, environment and capital gains taxes to address environmental, economic (e.g. property prices) and social (rising inequality) issues. The environmental consumption tax combines elements of all three being a land tax scaled according to environmental damage done.

“For our biodiversity and ecosystem services, the introduction of such a tax would require that polluters pay for degradation of nature, a real disincentive.

“An accompanying rebate structure could redistribute all or part of that revenue raised to conservation and other prosperity-enhancing activities.

“Conservation receives just a fraction of the funding it needs in New Zealand, and protecting our natural heritage requires much more investment.

“Novel economic reforms will help fund the substantial investment needed in conservation and other public good exercises, often left out in the cold on Budget Day,” said Dr Brown.

ENDS

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Environmental Defence Society

EDS speaks for the environment. It has influence.

Since 1971, EDS has been driving environmental protection in Aotearoa New Zealand through law and policy change. That's why it's one of this country's most influential non- profit organisations when it comes to achieving better environmental outcomes.

EDS has expertise in key disciplines including law, planning, landscape and science. It operates as a policy think-tank, a litigation advocate, and a collaborator – bringing together the private and public sectors for constructive engagement.

EDS runs conferences and seminars on topical issues, including an annual Environmental Summit and the Climate Change and Business Conference.

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