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Energy Taxation Directive

FACT SHEET NO.: Cat-No.2 / Subcat-No.2.1

General Information

Title

FACT SHEET NO.: Cat-No.2 / Subcat-No.2.1

Category

2. Taxation

Subcategory

2.1 Fuel taxation

Transport policy measure (TPM)

Energy Taxation Directive

Description of TPM

The existing Energy Tax Directive 2003/96/EC represents the Community framework for the taxation of energy products and electricity. The highest minimum tax rates were introduced for oil fuels (excluding international aviation and shipping). Coal and electricity minimum tax rates were introduced but at extremely low levels.
Source:EC (2003, 2011)

Implementation examples

Europe-wide implementation

Objectives of TPM

To reduce emissions and influence consumer behavior, encourage the industry to select low-energy products and to give a big push to the use of renewable energy sources (RES).

Choice of transport mode / Multimodality

Within road transport intramodal shifts to biofuelled vehicles

Origin and/or destination of trip

Trip frequency

Choice of route

Timing (day, hour)

Occupancy rate / Loading factor

Energy efficiency / Energy usage

Fuel efficiency improvements are expected

Main source

[1] EU Directive 2003/96/EC (2003): http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2003:283:0051:0070:EN:PDF
[2] Kouvaritakis, N., Stroblos, N.,Paroussos, L., Revesz, T., Zalai, E., Van Regemorter, D. (2005): Impacts of energy taxation in the enlarged European Union, evaluation with GEM-E3 Europe. Study for the European Commission DG TAXUD
[3] European Commission (2003): COUNCIL DIRECTIVE 2003/96/EC of 27 October 2003 restructuring the Community framework for the taxation of energy products and electricity. Brussels.
[4] European Commission (2011): Proposal for a Council Directive amending Directive 2003/96/EC restructuring the Community framework for the taxation of energy products and electricity. COM(2011)169, Brussels.

Traffic Impacts

Passengers 

         

Transport operators 

           

Unassigned 

         

Travel or transport time

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Risk of congestion

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Vehicle mileage

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Service and comfort

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Overall impacts on social groups

Implementation phase

Operation phase

Summary / comments concerning the main impacts

Decrease in vehicle mileage for road and rail transport; increase of public transport. Road and rail decrease due to higher transport costs.

Quantification of impacts


Economic Impacts

Passengers 

         

Transport operators 

           

Unassigned 

         

Transport costs

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Private income / commercial turn over

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Revenues in the transport sector

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Sectoral competitiveness

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Spatial competitiveness

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Housing expenditures

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Insurance costs

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Health service costs

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Public authorities & adm. burdens on businesses

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Public income (e.g.: taxes, charges)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Third countries and international relations

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Overall impacts on social groups

Implementation phase

Operation phase

Summary / comments concerning the main impacts

An increase in transport cost for road and rail can be expected due to higher fuel costs.
In terms of overall welfare, the policy measure is slightly positive, mostly in the New Member States. The positive impact goes mainly through an increased private consumption.[2], p.15
At sectoral level, the energy intensive sectors and especially those using coal, are the most affected by the policy both in terms of production and exports, though the impact remains small. In some sectors and countries, the prices can even decrease through the interactions of demand and supply in the labour and good market and their impact on production factors cost.[2], p. 16
Public income will rise if only taxation increases. This could be used to (cross) finance improvements in other parts of the transport system

Quantification of impacts


Social Impacts
Environmental Impacts

Passengers 

         

Transport operators 

           

Unassigned 

         

Air pollutants

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Noise emissions

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Visual quality of the landscape

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Land use

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Climate

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Renewable or non-renewable resources

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Overall impacts on social groups

Implementation phase

Operation phase

Summary / comments concerning the main impacts

The impact is greater in the new Member States as the level of energy taxation remain lower there than in most EU15 countries, even with the implementation of the minimum tax. The reduction in CO2 emissions in the New Member States varies between 4 and 12%, compared to an average of 2% in EU15. [2], p.15

Quantification of impacts


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