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European Economic and Social Committee
© S
hutt
erst
ock:
kos
ecki
Analysis and quantification of a new fiscally neutral European tax
STUDY
Analysis and quantification of
a new fiscally neutral European tax
Authors: Univ. Prof. i.R. Dipl.-Ing. Dr. Mikuláš Luptáčik and Peter Luptáčik
This study was carried out by Industriewissenschaftliches Institut (IWI) following a call for tenders
launched by the European Economic and Social Committee. The information and views set out in this
study are those of the authors and do not necessarily reflect the official opinion of the European
Economic and Social Committee. The European Economic and Social Committee does not guarantee
the accuracy of the data included in this study. Neither the European Economic and Social Committee
nor any person acting on the Committee’s behalf may be held responsible for the use which may be
made of the information contained therein.
EN
Abstract
The present study contributes to the discussion on the new European tax or fee, which would be based
on taxing end consumption (taxing the products and not the production) according to how much CO2
is emitted during the production of particular commodities, irrespective of whether all or a part of this
process takes place inside or outside the EU. The analysis is based on the input-output model, which
provides an appropriate and unique approach for measuring the total CO2 content of the various
commodities taking the entire production chain into account. The calculation by products can be the
basis for the estimation of product specific CO2 taxes. The model calculations based on the Input-
Output Table for the EU-27 for the year 2011 leads to the tax rate of EUR 40.69 per tonne of CO2
emissions, which could have generated fiscal revenue in the amount of 1% of EU GDP. In line with
the principle of fiscal neutrality, a reduction of the labour costs by -2.03 % could compensate the
introduction of a CO2 tax by the amount of EUR 40.69 per tonne of CO2. The results for different
Member States differ significantly from the "European average".
Table of Contents
1 Introduction ..................................................................................................................................... 1
2 Objectives and grounds for the study .............................................................................................. 2
3 Methodology ................................................................................................................................... 4
3.1 The Leontief demand side model ............................................................................................ 4
3.2 The Leontief price model ........................................................................................................ 8
3.3 Input-Output modelling of environmental impact .................................................................. 9
3.4 Modelling of the compensation mechanism for the new European tax ................................ 11
4 Results of the simulation ............................................................................................................... 13
4.1 Estimation of the CO2 tax rate .............................................................................................. 13
4.2 Cost push effect of the new CO2 taxes .................................................................................. 19
4.3 Fiscal neutrality of the new European CO2 tax ..................................................................... 23
4.4 Comparison of the cost-push effects for particular EU countries ......................................... 29
5 Conclusions and recommendations, and proposals for action ...................................................... 39
6 Complete bibliography and References ........................................................................................ 41
7 Annex ............................................................................................................................................ 42
Figures
Figure 1: The basic structure of the make and use system ...................................................................... 4
Figure 2: Symmetric input-output-table – product-by-product ............................................................... 6
Figure 3: Estimation of the CO2 tax rate ............................................................................................... 17
Figure 4: EUA price and trading volumes, 2008-2014 ......................................................................... 18
Figure 5: Estimation of the CO2 tax rate (year 2010) ........................................................................... 29
Tables
Table 1: Leontief inverse for EU-27 (year 2011).................................................................................... 7
Table 2: Direct and indirect CO2 emissions .......................................................................................... 14
Table 3: CO2 emissions generated by final use ..................................................................................... 16
Table 4: Estimation of the share of CO2 tax payments on output value ............................................... 20
Table 5: Cost-push effects of introducing CO2 tax ............................................................................... 22
Table 6: Data for the labour costs related to the particular commodities ............................................. 24
Table 7: Price effects of the reduction of labour costs .......................................................................... 26
Table 8: Price effects of the simultaneously introducing a CO2 tax and reducing labour costs ........... 28
Table 9: Direct CO2 emission coefficients for 8 countries (Part 1) ...................................................... 30
Table 10: Direct CO2 emission coefficients for 8 countries (Part 2) .................................................... 31
Table 11: Cost-push effects for 8 countries (Part 1) ............................................................................. 33
Table 12: Cost-push effects for 8 countries (Part 2) ............................................................................. 34
Table 13: Price effects of reducing the labour costs for 8 countries (Part 1) ........................................ 35
Table 14: Price effects of reducing the labour costs for 8 countries (Part 2) ........................................ 36
Table 15: Overall price effects for 8 countries (Part 1) ........................................................................ 37
Table 16: Overall price effects for 5 countries (Part 2) ........................................................................ 38
Table 17: Cumulative CO2 emission coefficients for 8 countries (Part 1) ............................................ 42
Table 18: Cumulative CO2 emission coefficients for 8 countries (Part 2) ............................................ 43
Table 19: Total CO2 emissions for 8 countries in physical units (Part 1) ............................................. 44
Table 20: Total CO2 emissions for 8 countries in physical units (Part 2) ............................................. 45
Table 21: Total CO2 emissions generated through final use for 8 countries in physical units (Part 1) 46
Table 22: Total CO2 emissions generated through final use for 8 countries in physical units (Part 2) 47
Analysis and quantification of a new fiscally neutral European tax
1
The budget of the European Union is financed by own resources, other revenue and the surplus
carried over from the previous year. According to the First Assessment Report of the High Level
Group on Own Resources (Brussels, 17 December 2014) own resources are defined as “revenue
accruing irrevocably to the EU in order to finance its budget without being conditional to a decision
by national authorities” (p. 8). Current Own Resources Decision defines 1,23 % of the Gross National
Income (GNI) as of the EU as the ceiling of own resources. Criticism of the present system is coming
primary from the European Parliament and the Commission, the Court of Auditors and the European
Economic and Social Committee (EESC) initiate the discussion on this system by considering new
types of own resources that would change the current way of funding the budget of the EU.
The following study contributes to the discussion on the new European tax or fee, which would be
based on taxing end consumption (taxing the products and not the production) according to how much
CO2 is emitted during the production of particular commodities, irrespective of whether all or a part of
this process takes place inside or outside the EU. In line with the principle of fiscal neutrality,
consumption in the form of reduction of labour costs should be taken into account. Due to this
principle, the prices for products with relatively high CO2 content will increase whereas prices for
products with lower CO2 content will decrease and as a result the environmentally friendly behaviour
of consumers can be supported.
Compensation in the form of reducing the labour cost stimulates the demand for labour and increases
employment. Positive effects for the environment as well as for the employment (double dividend)
can be expected as shown in the paper by Conrad – Schmidt (1998) [1].
Aiming at taxing final consumption according to CO2 emissions generated along the entire production
chain of the particular commodities the input-output model provides the adequate instrument. The
input-output model permits to calculate the total CO2 emissions generated in the entire production
chain of the particular commodities delivered to final consumption. Evidence on the total CO2 content
is a prerequisite for taxing the various commodities according environmental considerations. The
necessary data describing the production and the use of different commodities in the economy are an
integral part of national accounts (the supply and use tables). On the basis of model assumptions the
information included in the supply and the use tables at basic prices is then converted into symmetric
input-output tables. The objective is to arrive at parameters describing structural relationships, to
estimate the input coefficients which represent the value of particular products used as an input per
unit of output of other products. Subsequently the input-output methodology allows us to take all
indirect effects generated by the production activities and in this way consider the entire production
chain into account.
The study is organized as follows. In the next section the objectives and grounds for the study are
described. The methodology used in the study is subject of Section 3 followed by results of the
1 Introduction
Analysis and quantification of a new fiscally neutral European tax
2
simulation, which are discussed in Section 4. The last section is devoted to conclusions,
recommendations and proposals for further actions.
The EU cannot function properly, if it does not have enough own resources. The present system of
financing the EU budget is based on own resources, other revenue and surplus carried over from the
previous year. The components of the current own resources system are traditional own resources,
VAT based own resources and GNI-based own resources (resulting from the application of a uniform
call rate to total EU GNI to match the total volume of resources to the total volume of expenditure)
and correction mechanisms, which grant particular Member States a reduction of their contribution to
the EU budget. Criticism of this system coming from the European Parliament, the Commission, the
Court of Auditors and the EESC can be summarized into four points (EESC, 2015) [3]:
the current own resources system is too complex and lacking in transparency, especially
regarding contributions from gross national income and harmonised value added tax.
own resources do not originate with the EU, but are in fact contributions from national
budgets that account for as much as 83 % of the European budget in the year 2013.
national fiscal deficits also lead to more contributions making late payments into the budget,
as the Commission has noted
reforming the own resources system requires the agreement of all Member States.
According to the preliminary draft opinion of the Section for Economic and Monetary Union and
Economic and Social Cohesion on “A European tax as an EU own resource” discussed at the
meeting on June 1st, 2015 the following three elements are desirable for a new own resources system:
simplification of Member States’ contributions, presentation of a new own resources system and
reformation of the corrections system.
The European Economic and Social Committee defines the following criteria from which as many as
possible should be fulfilled: equity and fairness, efficiency, stability, transparency and simplicity,
accountability and budgetary discipline (see Section 5: Criteria for the new system of EU own
resources of the Preliminary Draft Opinion (2015) [3]). The important requirement for the new EU tax
is the fiscal neutrality: introducing an EU tax paid directly into EU budget will reduce payments from
Member State budgets and Member States will therefore reduce other fiscal revenue by the same sum.
One proposal of the EESC (see [3]) is to tax energy consumption and CO2 emissions generated
through the entire production chain. End use of goods and services on the European Market will be
taxed. Exported goods and services will not be taxed in order not to burden domestic producers when
exporting to third countries.
2 Objectives and grounds for the study
Analysis and quantification of a new fiscally neutral European tax
3
The introduction of an EU environmental tax along these lines will lead – through cost push effects –
to changes of relative prices in favour of environmentally friendly produced goods and services and in
this way to increasing environmental protection. The following question arises: having data on
emissions generated – directly and indirectly – by the production of particular products, how to
estimate the charge for one tonne of CO2 in order to generate revenue for the EU budget in the amount
of 1 % GNI?
Taking into account the requirement of fiscal neutrality e.g. by reducing the labour cost, the next
question is coming up: which reduction of labour cost is needed in order to compensate the higher
cost caused by introducing a product-specific CO2 tax? Depending on the availability of data different
possibilities of the combination of energy and CO2 tax and of the reduction of other taxes, charges and
other costs can be considered.
Previous studies dealing with the economic effects of introducing taxes aiming at reducing CO2
emissions in the EU (Conrad-Schmidt, (1998) [1]) show the positive effects for the environment as
well as for the labour market (so called “double dividend”).
Analysis and quantification of a new fiscally neutral European tax
4
3.1 The Leontief demand side model
Competitiveness of an economy is not given by simple adding of the activities of the particular
industries, but by the complex relationships between them is argued in the study of the European
Commission in 2005 [2]. In order to analyse the relationships between the industries in the economy
we need data on their outputs (goods and services) and intermediate outputs (goods and services from
other industries) as well as about primary inputs (imports, labour and capital and production taxes
net). Such data is collected in the account-system of the national accounting – make and use system –
as a system of interlinked commodity and production accounts.
Figure 1: The basic structure of the make and use system
Source: IWI
An element of 𝑉, 𝑣𝑖𝑗, describes the value of the output of commodity 𝑗 that is produced by industry 𝑖.
Thus the dimensions of 𝑉 are industry-by-commodities. In other words, matrix 𝑉 shows the outputs of
the economy (it is also called the output matrix).
An element of the Use-matrix domestic goods 𝑈𝑑 , 𝑢𝑖𝑗 , shows the value of inputs of domestic
commodity 𝑖 by industry 𝑗. Industries use commodities to make commodities (𝑈 is sometimes called
the absorption or input matrix). In the same way the elements of the Use-matrix imported goods 𝑈𝑚
can be interpreted. They give us the value of imported commodity (or product) transformed by
industry 𝑗 in the production process.
domestic
commodities
imported
commodities industries final demand total output
domestic
commodities
Use-matrix
domestic goods
Ud
final demand matrix
domestic goods
Yd
of domestic goods
qd
imported
commodities
Use-matrix
imported goods
Um
final demand matrix
imported goods
Ym
of imported goods
qm
industriesMake-matrix
V
of industries
g
imports Imports m'
value addedvalue added
W
sum
domestic goods-
production
qd
imported goods
qm
production-costs
gfinal demand
primary input
3 Methodology
Analysis and quantification of a new fiscally neutral European tax
5
The matrices 𝑌𝑑 and 𝑌𝑚 describe the final demand, which is the part of production, which is for
given period (usually for the particular year) not used as an input for production of other commodities.
The following categories of final demand have to be distinguished:
Final consumption expenditure by product and by
o households
o by non-profit organisations serving households (NPISH)
o by government
Gross capital formation by product and by
o Gross fixed capital formation
o Changes in valuables
o Changes in inventories
Exports
The matrix 𝑊 contains valued added by industry and components. The standard disaggregation by
components is:
Compensation of employees:
o Wages and salaries
o Employers’ social contribution
Other taxes less subsidies on production:
o Other taxes on production
o Other subsidies on production
Consumption of fixed capital
Operating surplus, net
Using these data the symmetric input-output tables in the classification commodity × commodity or
activities × activities can be constructed.
Analysis and quantification of a new fiscally neutral European tax
6
Figure 2: Symmetric input-output-table – product-by-product
Source: IWI
In the table intermediate consumption the term 𝑥𝑖𝑗 represents the use of product 𝑖 used by the
production of product 𝑗. In other words, 𝑧𝑖𝑗 (𝑗 = 1, 2, … , 𝑛) describe the deliveries of commodity 𝑖 for
production of all other commodities. The deliveries of the output of each of the products can be
described by the following set of equations:
𝑥11 + 𝑥12 + 𝑥13 + 𝑥14 + ⋯ + 𝑥1𝑛 + 𝑦1 = 𝑥1
𝑥21 + 𝑥22 + 𝑥23 + 𝑥24 + ⋯ + 𝑥2𝑛 + 𝑦2 = 𝑥2
𝑥31 + 𝑥32 + 𝑥33 + 𝑥34 + ⋯ + 𝑥3𝑛 + 𝑦3 = 𝑥3
⋮ ⋮
𝑥𝑛1 + 𝑥𝑛2 + 𝑥𝑛3 + 𝑥𝑛4+. . . +𝑥𝑛𝑛 + 𝑦𝑛 = 𝑥𝑛
Dividing the elements 𝑥𝑖𝑗 by the output value of product 𝑗 the so called technical or input coefficients
can be estimated. Denoting the input coefficients matrix by 𝐴 = {𝑎𝑖𝑗}, the element 𝑎𝑖𝑗 describes the
direct input of product 𝑖 (expressed in monetary units) per unit of output of the product 𝑗. Using the
input coefficients 𝑎𝑖𝑗 as a set of fixed technical coefficients the following kind of question can be
asked: How much output of each commodity would be necessary to produce in order to fulfil
exogenously given final demand. This can be done by solving the following set of linear equations in
𝑛 unknowns 𝑥 = (𝑥1, 𝑥2, … , 𝑥𝑛) denoting the total output vector of the commodities:
(𝐼 − 𝐴)𝑥 = 𝑦
where 𝐼 denotes the 𝑛 × 𝑛 identity matrix and 𝑦 = (𝑦1, 𝑦2, … , 𝑦𝑛) is the vector of final demand. The
solution is given as:
𝑥 = (𝐼 − 𝐴)−1𝑦
Products
CPA
Intermediate
consumption
Fin
al c
on
sum
pti
on
Gro
ss c
apit
al f
orm
atio
n
Exp
ort
s
Tota
l Use
Value Added
Supply
Final
Uses
Products
CPA
Analysis and quantification of a new fiscally neutral European tax
7
where (𝐼 − 𝐴)−1 = 𝑅 = {𝑟𝑖𝑗} is known as the Leontief inverse or the total (or cumulative)
requirements matrix. The element 𝑟𝑖𝑗 of this matrix describes the input of commodity 𝑖 which is
necessary to deliver one unit of commodity 𝑗 for final demand. In other words, the elements of the
Leontief inverse describe the direct and indirect requirements of commodity 𝑖 for one unit of output of
commodity (𝑖, 𝑗 = 1, 2, … , 𝑛).1
Table 1: Leontief inverse for EU-27 (year 2011)
Source: IWI (2016), Computations based on Eurostat, Input-Output-Tables 2011 for EU-27
The elements of the Leontief inverse provide deeper insights into structural interdependencies in the
production of commodities. The sum of the columns in this matrix (for the domestic matrix A) shows
the total production in the economy which is necessary for delivering of one unit of product 𝑗 for final
demand. They are called output multipliers. It is obvious that – because of the indirect effects – the
elements of the Leontief inverse are higher than the elements of the matrix 𝐴.
For the illustration in the Table 1 a part of the Leontief inverse (including the first 24 products for the
year 2011) is provided. For example, we can see in column 1 that for delivering of products of
agriculture, hunting and related services in monetary value of 1 million euros for final demand the
product chemicals and chemical products (domestic and imported) in value of 89.700 euros and
electricity, gas, steam and air-conditioning (domestic and imported) in the value of 50.800 and so on
are needed. In this way all elements of the Leontief inverse matrix can be interpreted.
The elements in the last row of the table show the output multipliers. For producing 1 million euros of
the commodity of agriculture, hunting and related services for final demand products (domestic and
imported) in the amount of 2,253 million euros had to be produced. The output multipliers show
significant differences between particular products, due to the intensity of the inter-industrial
relationships. For the foundations and extensions of the static Leontief model, see e.g. Miller, Blair
(2009) [5].
1 For the foundations and extensions of input-output analysis see Miller, Blair (2009)
Products
of
agricultu
re,
hunting
and
related
services
Products
of
forestry,
logging
and
related
services
Fish and
other
fishing
products
;
aquacult
ure
products
; support
services
Mining
and
quarryin
g
Food
products
,
beverag
es and
tobacco
products
Textiles,
wearing
apparel
and
leather
products
Wood
and of
products
of wood
and
cork,
except
furniture;
articles
of straw
Paper
and
paper
products
Printing
and
recordin
g
services
Coke
and
refined
petroleu
m
products
Chemica
ls and
chemical
products
Basic
pharmac
eutical
products
and
pharmac
eutical
preparati
ons
Rubber
and
plastics
products
Other
non-
metallic
mineral
products
Basic
metals
Fabricat
ed metal
products
, except
machine
ry and
equipme
nt
Compute
r,
electroni
c and
optical
products
Electrical
equipme
nt
Machine
ry and
equipme
nt n.e.c.
Motor
vehicles,
trailers
and semi-
trailers
Other
transport
equipme
nt
Furnitur
e; other
manufact
ured
goods
Repair
and
installatio
n
services
of
machine
ry and
equipme
nt
Electricit
y, gas,
steam
and air-
condition
ing
CPA_A0
1
CPA_A0
2
CPA_A0
3CPA_B
CPA_C1
0-C12
CPA_C1
3-C15
CPA_C1
6
CPA_C1
7
CPA_C1
8
CPA_C1
9
CPA_C2
0
CPA_C2
1
CPA_C2
2
CPA_C2
3
CPA_C2
4
CPA_C2
5
CPA_C2
6
CPA_C2
7
CPA_C2
8
CPA_C2
9
CPA_C3
0
CPA_C3
1_C32
CPA_C3
3
CPA_D3
5
CPA_A01 Products of agriculture, hunting and related services 1,1905 0,0250 0,0186 0,0022 0,2847 0,0230 0,0091 0,0078 0,0047 0,0044 0,0160 0,0093 0,0149 0,0041 0,0045 0,0039 0,0046 0,0044 0,0040 0,0047 0,0042 0,0053 0,0039 0,0043
CPA_A02 Products of forestry, logging and related services 0,0026 1,1974 0,0023 0,0014 0,0027 0,0017 0,1399 0,0393 0,0086 0,0016 0,0022 0,0015 0,0033 0,0023 0,0021 0,0020 0,0015 0,0016 0,0014 0,0017 0,0021 0,0126 0,0016 0,0019
CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing0,0007 0,0003 1,0432 0,0001 0,0055 0,0002 0,0001 0,0002 0,0001 0,0001 0,0007 0,0002 0,0002 0,0001 0,0001 0,0001 0,0001 0,0001 0,0001 0,0001 0,0001 0,0002 0,0001 0,0001
CPA_B Mining and quarrying 0,0483 0,0275 0,0822 1,1224 0,0424 0,0375 0,0409 0,0658 0,0342 0,7056 0,1430 0,0376 0,0636 0,1301 0,1773 0,0568 0,0359 0,0471 0,0416 0,0447 0,0386 0,0366 0,0381 0,2719
CPA_C10-C12 Food products, beverages and tobacco products 0,1417 0,0071 0,0550 0,0047 1,2492 0,0295 0,0083 0,0158 0,0085 0,0095 0,0346 0,0218 0,0147 0,0083 0,0089 0,0067 0,0086 0,0076 0,0070 0,0078 0,0075 0,0084 0,0070 0,0065
CPA_C13-C15 Textiles, wearing apparel and leather products 0,0058 0,0045 0,0300 0,0026 0,0058 1,4520 0,0096 0,0255 0,0097 0,0039 0,0093 0,0070 0,0238 0,0065 0,0058 0,0066 0,0069 0,0066 0,0068 0,0186 0,0109 0,0329 0,0078 0,0030
CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials0,0067 0,0108 0,0100 0,0053 0,0076 0,0059 1,2589 0,0253 0,0094 0,0073 0,0070 0,0046 0,0094 0,0125 0,0111 0,0101 0,0073 0,0076 0,0075 0,0095 0,0134 0,0788 0,0088 0,0069
CPA_C17 Paper and paper products 0,0115 0,0054 0,0102 0,0049 0,0320 0,0203 0,0204 1,3195 0,2337 0,0088 0,0271 0,0206 0,0264 0,0188 0,0111 0,0110 0,0148 0,0163 0,0110 0,0115 0,0110 0,0207 0,0104 0,0083
CPA_C18 Printing and recording services 0,0037 0,0025 0,0039 0,0026 0,0068 0,0081 0,0053 0,0186 1,1024 0,0041 0,0087 0,0093 0,0072 0,0057 0,0056 0,0055 0,0073 0,0064 0,0059 0,0067 0,0064 0,0086 0,0055 0,0041
CPA_C19 Coke and refined petroleum products 0,0498 0,0331 0,1022 0,0253 0,0320 0,0263 0,0306 0,0318 0,0199 1,1903 0,0949 0,0247 0,0420 0,0415 0,0505 0,0239 0,0202 0,0236 0,0208 0,0230 0,0211 0,0213 0,0206 0,0472
CPA_C20 Chemicals and chemical products 0,0897 0,0231 0,0600 0,0267 0,0565 0,1062 0,0744 0,1210 0,0797 0,0959 1,3932 0,1367 0,3206 0,0700 0,0703 0,0545 0,0523 0,0679 0,0458 0,0725 0,0502 0,0625 0,0413 0,0440
CPA_C21 Basic pharmaceutical products and pharmaceutical preparations0,0080 0,0006 0,0046 0,0005 0,0050 0,0018 0,0013 0,0019 0,0014 0,0015 0,0122 1,1357 0,0044 0,0011 0,0012 0,0010 0,0017 0,0012 0,0010 0,0013 0,0014 0,0028 0,0011 0,0008
CPA_C22 Rubber and plastics products 0,0160 0,0077 0,0189 0,0088 0,0303 0,0363 0,0227 0,0361 0,0239 0,0166 0,0363 0,0231 1,1393 0,0232 0,0188 0,0264 0,0369 0,0464 0,0397 0,0801 0,0395 0,0393 0,0332 0,0125
CPA_C23 Other non-metallic mineral products 0,0108 0,0051 0,0084 0,0154 0,0138 0,0085 0,0235 0,0089 0,0061 0,0144 0,0177 0,0111 0,0153 1,1547 0,0225 0,0167 0,0149 0,0168 0,0129 0,0187 0,0138 0,0144 0,0166 0,0127
CPA_C24 Basic metals 0,0164 0,0123 0,0192 0,0201 0,0181 0,0182 0,0271 0,0255 0,0202 0,0302 0,0382 0,0188 0,0477 0,0411 1,4876 0,2675 0,0759 0,1778 0,1630 0,1555 0,1268 0,0752 0,1187 0,0299
CPA_C25 Fabricated metal products, except machinery and equipment 0,0220 0,0150 0,0268 0,0256 0,0283 0,0231 0,0373 0,0268 0,0208 0,0321 0,0333 0,0184 0,0471 0,0361 0,0810 1,2288 0,0589 0,0921 0,1552 0,1250 0,1354 0,0608 0,1068 0,0301
CPA_C26 Computer, electronic and optical products 0,0071 0,0059 0,0111 0,0068 0,0090 0,0093 0,0100 0,0116 0,0156 0,0104 0,0138 0,0114 0,0138 0,0122 0,0154 0,0173 1,2784 0,0793 0,0390 0,0321 0,0656 0,0342 0,0548 0,0169
CPA_C27 Electrical equipment 0,0072 0,0051 0,0109 0,0082 0,0082 0,0079 0,0099 0,0119 0,0089 0,0107 0,0114 0,0076 0,0138 0,0125 0,0184 0,0218 0,0611 1,1740 0,0461 0,0481 0,0402 0,0182 0,0502 0,0309
CPA_C28 Machinery and equipment n.e.c. 0,0206 0,0198 0,0186 0,0187 0,0169 0,0131 0,0185 0,0220 0,0172 0,0223 0,0184 0,0118 0,0221 0,0211 0,0321 0,0375 0,0369 0,0439 1,1731 0,0895 0,0697 0,0192 0,0762 0,0209
CPA_C29 Motor vehicles, trailers and semi-trailers 0,0071 0,0080 0,0053 0,0046 0,0069 0,0062 0,0088 0,0072 0,0055 0,0070 0,0073 0,0059 0,0128 0,0086 0,0106 0,0131 0,0172 0,0225 0,0504 1,3698 0,0267 0,0104 0,0192 0,0061
CPA_C30 Other transport equipment 0,0022 0,0020 0,0229 0,0032 0,0025 0,0023 0,0028 0,0032 0,0025 0,0042 0,0033 0,0028 0,0032 0,0031 0,0050 0,0055 0,0075 0,0059 0,0062 0,0052 1,3020 0,0040 0,0482 0,0031
CPA_C31_C32 Furniture; other manufactured goods 0,0021 0,0024 0,0034 0,0016 0,0029 0,0052 0,0108 0,0034 0,0095 0,0022 0,0037 0,0043 0,0045 0,0044 0,0045 0,0048 0,0121 0,0049 0,0058 0,0065 0,0080 1,0693 0,0083 0,0029
CPA_C33 Repair and installation services of machinery and equipment 0,0171 0,0116 0,0293 0,0248 0,0155 0,0126 0,0205 0,0286 0,0208 0,0257 0,0203 0,0102 0,0162 0,0226 0,0335 0,0248 0,0247 0,0267 0,0297 0,0296 0,0834 0,0172 1,0616 0,0218
CPA_D35 Electricity, gas, steam and air-conditioning 0,0508 0,0212 0,0638 0,0604 0,0644 0,0623 0,0650 0,1365 0,0646 0,0722 0,0899 0,0451 0,0757 0,1045 0,1127 0,0613 0,0420 0,0532 0,0502 0,0547 0,0489 0,0451 0,0457 1,3621
… …
… …
Output multipliers 2,2529 1,7713 2,1944 1,7706 2,6956 2,6448 2,5119 2,7277 2,3768 2,8812 2,8142 2,3455 2,6174 2,4369 2,9905 2,5151 2,5960 2,6124 2,5728 2,9500 2,8576 2,3226 2,3940 2,4894
Leontief inverse for EU-27 for the year 2011
Analysis and quantification of a new fiscally neutral European tax
8
3.2 The Leontief price model
Leontief originally developed the input-output model in physical units (bushels of wheat, yards of
cloth, man-years of labour etc.). He assumed that direct input coefficients, 𝐴, are based on physical
quantities of inputs divided by physical quantities of outputs. These data were then converted to a
table of (base year) transactions in value terms by using (base year) unit prices.
As already noted, input-output data are usually assembled and input-output studies are generally
presented in monetary (value) units. As we see in Figure 2, when all inputs are accounted for in the
processing industry, then the 𝑗th column sum (total outlays) is equal to the 𝑗-th row sum (total output).
Thus, summing up the 𝑗-th column in Figure 2, we can write:
𝑥′ = 1′𝑋 + 𝑤′
where 1′ = (1,1, … ,1) and 𝑤′ is the vector of value added by each product.
Substituting 𝑋 = 𝐴𝑥, where 𝑥 is the diagonal matrix of the total outputs, and postmultiplying by 𝑥−1
yields:
𝑥′𝑥−1 = 1′𝐴𝑥𝑥−1 + 𝑤′�̂�−1
or
1′ = 1′𝐴 + 𝑎′𝑤
where 𝑎′𝑤 = (𝑤1
𝑥1, … ,
𝑤𝑛
𝑥𝑛) is the vector of value added coefficients. The right side of this equation
describes the cost of inputs per unit of output. Output prices are set equal to total cost of production,
so each price is equal to 1. This illustrates the unique measurement units in the base year table,
amounts that can be purchased for 1 euro. Denoting the base year index prices by 𝑝𝑗 and 𝑝′ =
(𝑝1, 𝑝2, … , 𝑝𝑛) the Leontief price model (cost-push) can be written as:
𝑝′ = 𝑝′𝐴 + 𝑎′𝑤
For given value added coefficients 𝑎𝑤 the index prices for products can be estimated:
𝑝′ = 𝑎′𝑤(𝐼 − 𝐴)−1
The logic is that changes in the prices of a primary factors of production lead to changes in unit costs
and therefore output prices via the fixed production recipes in 𝐴. For example, cost increases are
passed along completely as intermediate input price increases to all purchasers, who in turn pass on
these increases by raising their output prices accordingly, etc. For further readings on the price model,
see, e.g. Miller, Blair (2009) [5].
Analysis and quantification of a new fiscally neutral European tax
9
3.3 Input-Output modelling of environmental impact
With the emergence of energy and environmental concerns, extension of the Leontief model were
developed, in which economic transactions are expressed in monetary terms and ecological and/or
energy transactions are recorded in physical terms (tonnes, BTUs, joules, etc.). In order to estimate
the total CO2 emissions requirements of particular commodities we use data from integrated sets of
accounts for economic and environmental information (NAMEA system from Eurostat) where the
CO2 emissions generated by the production of particular commodities can be found.
Let 𝑎𝑗𝑒 =
𝑒𝑗
𝑥𝑗 (𝑗 = 1, 2, … , 𝑛) denote CO2 emissions per unit of output of commodity 𝑗 . Then
multiplying the vector 𝑎𝑒 by the Leontief inverse 𝑅 the total emission coefficients 𝑟𝑒 can be
estimated:
𝑟𝑒 = 𝑎𝑒𝑅
They describe the emissions generated by the production of one unit of a particular commodity
delivered to final demand. In this way the total amount of CO2 emission generated through the entire
production chain of the particular commodities can be estimated and serves as the crucial parameter
for the quantification of the environmental tax rate.
Knowing the total CO2 requirements per unit of commodity and the amount of final demand the CO2
emissions can be estimated:
𝑒(𝐶𝑂2) = 𝑟𝑒𝑦𝐷
where 𝑦𝐷 denotes final demand excluding exports, according to the requirements on the EU tax (no
taxation of goods and services exported from the EU).
The CO2 tax rate bringing 1 % of GNI of EU can be calculated from the following equation:
1% 𝑜𝑓 𝐺𝑁𝐼 = 𝑡 × 𝑒(𝐶𝑂2)
𝑡 =1% 𝑜𝑓 𝐺𝑁𝐼
𝑒(𝐶𝑂2)
Another possibility for EU taxes as genuine own resource to finance the EU budget is to tax on energy
consumption. For the modelling point of view the procedure is similar to the CO2 taxation, where the
vector of emissions 𝑎𝑒 is replaced by the vector of energy coefficients 𝑎𝑗𝛼 (𝑗 = 1,2, … , 𝑛) . The
elements of this vector describe the total amount of energy (measured in British Thermal Units
[BTU]) required to produce a euro’s worth of product 𝑗’s output:
𝑎𝑗𝛼 =
𝛼𝑗
𝑥𝑗
Analysis and quantification of a new fiscally neutral European tax
10
where 𝛼𝑗 is the total amount of energy needed for production of commodity 𝑗 in the value of 𝑥𝑗. Then
multiplying the vector 𝑎𝛼 by the Leontief inverse 𝑅 the total energy coefficients 𝑟𝛼 can be estimated:
𝑟𝛼 = 𝑎𝛼𝑅
They represent the total amount of energy required to produce one unit of product 𝑗 for the final
demand. In other words, they describe the total content of energy (direct and indirect) for production
of particular commodity. In the case of availability of data with respect to different type of energy
technologies the model can be extended as be done by Herendeen (1974) [4].
Knowing the total energy requirements per unit of commodity and the amount of final demand the
energy needed for the production of commodities for the final demand (excluding exports) can be
estimated:
𝛼𝑑 = 𝑟𝛼𝑦𝐷
where 𝑦𝐷 denotes final demand excluding exports, according to the requirements on the EU tax (no
taxation of goods and services exported from the EU).
The energy tax rate bringing 1 % of GNI of EU can be calculated from the following equation:
1% 𝑜𝑓 𝐺𝑁𝐼 = 𝑡𝛼 × 𝛼𝑑
𝑡𝛼 =1% 𝑜𝑓 𝐺𝑁𝐼
𝛼𝑑
Analysis and quantification of a new fiscally neutral European tax
11
3.4 Modelling of the compensation mechanism for the new European tax
As mentioned above the new European tax on own resources should be fiscally neutral. One
possibility proposed by EESC is to reduce the labour costs. In the input-output table we can find the
data on compensation of employees such that we can ask to which extent these should be reduced in
order to match the increasing cost of products due to the introducing of the CO2 tax.
Let us denote the vector of compensation of employees which is made up of the following
components (ESA 2010, 402)
(a) wages and salaries
(b) employers’ social contributions
by 𝑤 = (𝑤1, 𝑤2, … , 𝑤𝑛), 𝑤𝑗 = (𝑗 = 1, 2, … , 𝑛) denotes the compensation of employees needed for the
production of commodity 𝑗 in a given year. The total amount of the compensation is given by
𝑤 = ∑ 𝑤𝑗
𝑛
𝑗=1
The following question arises: how the compensation of employees should be changed such that the
total amount of fiscal revenue generated by reducing of labour cost is equal to the fiscal revenue
generated by CO2 taxes (or 1 % of GNI)2?
1% 𝐺𝑁𝐼 = 𝑡𝑤𝑤 and 𝑡𝑤 =1% 𝐺𝑁𝐼
𝑤
where 𝑡𝑤 is the rate of reducing the compensation of employees. A reduction of labour cost – e.g. by
lowering employers’ social contributions – increases the competitiveness of firms and consequently
can promote labour demand and increase employment. The reduction of the labour cost by reducing
taxes on labour increases the net income of employees and stimulates consumer demand and
subsequently promotes the economic growth.
The compensation mechanism based on the reduction of labour cost can be formalised as follows. Let
us denote by:
𝑎𝑗𝑤 =
𝑤𝑗
𝑥𝑗 (𝑗 = 1, 2, … , 𝑛)
the compensation of employees per unit of output value of commodity 𝑗. Then the compensation of
employees can be expressed as a function of commodity output:
𝑤𝑗 = 𝑎𝑗𝑤𝑥𝑗 (𝑗 = 1, 2, … , 𝑛)
2 Because only GDP is directly available from input-output data, GDP was used instead of GNI. In a later stage of the analysis the
calculations need to be refined.
Analysis and quantification of a new fiscally neutral European tax
12
Using the basic relation of the input-output model we can rewrite these equations as:
𝑤 = �̂�𝑤𝑥 = �̂�𝑤(𝐼 − 𝐴)−1𝑦
where �̂�𝑤 is the diagonal matrix of the compensation of employees’ coefficients. The expression
�̂�𝑤(𝐼 − 𝐴)−1 denoted by 𝑟𝑤 represents the cumulative (total) coefficients of employees’
compensation. The element 𝑟𝑗𝑤 of this vector describes the compensation of employees per unit of
final use of product 𝑗. Then the total compensation of employees in the economy is given by:
∑ 𝑤𝑗
𝑗
= 𝑎𝑤(𝐼 − 𝐴)−1𝑦 = 𝑟𝑤𝑦
The condition on fiscal neutrality on a European tax as an EU own resource can be described by the
following equation:
𝑡𝑒𝑟𝑒𝑦𝐷 = 𝑡𝑤𝑟𝑤𝑦
where 𝑦𝐷 is the final demand excluding exports (as required in the conditions for the determination of
the CO2 tax rate). The rate 𝑡𝑤 by which the total amount of fiscal revenue generated by the imposing
CO2 tax 𝑡𝑒 will be compensated can be estimated as:
𝑡𝑤 = 𝑡𝑒
𝑟𝑒𝑦𝐷
𝑟𝑤𝑦
As can be seen the reduction rate must be higher with a higher ratio of final demand excluding export
and with higher total emission coefficients.
By applying energy tax the necessary reduction rate will be estimated straight forward by replacing
CO2 tax 𝑡𝑒 in the above equation by the calculated energy tax 𝑡𝛼. Having both tax rates 𝑡𝑒 and 𝑡𝛼, a
combination of both charges can be considered and the resulting cost-push effects compared.
Analysis and quantification of a new fiscally neutral European tax
13
4.1 Estimation of the CO2 tax rate
Using the symmetric input-output table for EU-27 for the year 2011 and the matrix of input
coefficients in the dimension commodity × commodity including imports (as required for the
production of commodities it is irrelevant whether all or part of this process takes place inside or
outside the EU) and the direct emission coefficients provided by Eurostat and the first results of the
calculations are presented in Table 2.
The data in the first column of Table 2 describe the direct emission of CO2 per unit of output of
particular products. The highest CO2 emission show electricity, gas, steam and air conditioning, air
transport services, other non-metallic mineral products with more than 1 kg of CO2 emission per euro
of production.
The data in the fourth column show the total CO2 emission coefficients expressing the CO2 emissions
induced by a delivery of 1 euro to final demand of the particular commodities. They are estimated by
multiplication of direct emission coefficients by the Leontief Inverse.
4 Results of the simulation
Analysis and quantification of a new fiscally neutral European tax
14
Table 2: Direct and indirect CO2 emissions
Source: IWI (2016), Computations based on Eurostat, Input-Output-Tables 2011 for EU-27
direct CO2
emissions
coefficients
(kg/EUR)
Output at basic
prices
(in million euros)
Total CO2
emissions
(in 1000 tonnes)
total CO2
coefficients
(kg/EUR)
indirect CO2
content
(kg/EUR)
CPA_A01 Products of agriculture, hunting and related services 0,22203 345.895 76.798 0,4916 0,2696
CPA_A02 Products of forestry, logging and related services 0,09189 33.205 3.051 0,2238 0,1319
CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing 0,53328 12.216 6.515 0,8344 0,3011
CPA_B Mining and quarrying 0,35143 152.046 53.433 0,5877 0,2363
CPA_C10-C12 Food, beverages and tobacco products 0,07012 898.708 63.014 0,4063 0,3362
CPA_C13-C15 Textiles, wearing apparel, leather and related products 0,04799 213.617 10.252 0,3242 0,2762
CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials0,06013 109.699 6.597 0,3637 0,3036
CPA_C17 Paper and paper products 0,19999 163.028 32.605 0,6860 0,4860
CPA_C18 Printing and recording services 0,04067 87.822 3.571 0,3206 0,2799
CPA_C19 Coke and refined petroleum products 0,39120 368.854 144.294 0,9686 0,5774
CPA_C20 Chemicals and chemical products 0,28831 494.219 142.490 0,7727 0,4844
CPA_C21 Basic pharmaceutical products and pharmaceutical preparations 0,04446 181.677 8.077 0,2791 0,2346
CPA_C22 Rubber and plastic products 0,06124 235.239 14.407 0,4465 0,3852
CPA_C23 Other non-metallic mineral products 1,00447 188.596 189.440 1,5266 0,5221
CPA_C24 Basic metals 0,50114 362.734 181.780 1,1739 0,6727
CPA_C25 Fabricated metal products, except machinery and equipment 0,04556 440.268 20.058 0,4210 0,3755
CPA_C26 Computer, electronic and optical products 0,01498 240.051 3.596 0,2508 0,2358
CPA_C27 Electrical equipment 0,02674 256.871 6.870 0,3467 0,3200
CPA_C28 Machinery and equipment n.e.c. 0,02317 521.800 12.089 0,3160 0,2928
CPA_C29 Motor vehicles, trailers and semi-trailers 0,01862 619.468 11.538 0,3425 0,3239
CPA_C30 Other transport equipment 0,01647 177.821 2.929 0,2955 0,2791
CPA_C31_C32 Furniture and other manufactured goods 0,03995 181.587 7.254 0,2847 0,2448
CPA_C33 Repair and installation services of machinery and equipment 0,03895 223.746 8.715 0,2935 0,2546
CPA_D35 Electricity, gas, steam and air conditioning 1,75303 656.116 1.150.191 2,5990 0,8459
CPA_E36 Natural water; water treatment and supply services 0,14110 50.209 7.085 0,4405 0,2994
CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services0,25366 209.417 53.120 0,5065 0,2529
CPA_F Constructions and construction works 0,04889 1.699.591 83.089 0,3158 0,2669
CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles 0,04365 356.490 15.562 0,2040 0,1604
CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles 0,04892 1.137.200 55.627 0,2314 0,1825
CPA_G47 Retail trade services, except of motor vehicles and motorcycles 0,04572 779.347 35.633 0,1974 0,1516
CPA_H49 Land transport services and transport services via pipelines 0,36738 552.501 202.976 0,5868 0,2194
CPA_H50 Water transport services 0,61901 162.968 100.879 1,0388 0,4198
CPA_H51 Air transport services 1,04768 118.617 124.273 1,3939 0,3462
CPA_H52 Warehousing and support services for transportation 0,06723 406.148 27.304 0,2823 0,2151
CPA_H53 Postal and courier services 0,06092 85.404 5.203 0,2119 0,1510
CPA_I Accommodation and food services 0,03324 661.924 22.000 0,2136 0,1804
CPA_J58 Publishing services 0,01554 150.208 2.334 0,1661 0,1505
CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services0,01883 155.203 2.923 0,1797 0,1609
CPA_J61 Telecommunications services 0,01154 352.501 4.067 0,1402 0,1287
CPA_J62_J63 Computer programming, consultancy and related services; Information services 0,02296 446.720 10.255 0,1315 0,1085
CPA_K64 Financial services, except insurance and pension funding 0,00558 764.064 4.263 0,0765 0,0709
CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security 0,00328 298.410 978 0,0918 0,0885
CPA_K66 Services auxiliary to financial services and insurance services 0,00943 196.988 1.859 0,0913 0,0819
CPA_L68B Real estate services 0,01404 1.141.706 16.031 0,0922 0,0781
CPA_L68A Of which: imputed rents of owner-occupied dwellings 0,00400 710.547 2.846 0,0671 0,0631
CPA_M69_M70 Legal and accounting services; services of head offices; management consultancy services 0,03179 622.681 19.794 0,1306 0,0988
CPA_M71 Architectural and engineering services; technical testing and analysis services 0,04153 323.514 13.435 0,1748 0,1333
CPA_M72 Scientific research and development services 0,05295 144.262 7.638 0,2297 0,1768
CPA_M73 Advertising and market research services 0,02101 171.888 3.612 0,1603 0,1393
CPA_M74_M75 Other professional, scientific and technical services and veterinary services 0,06048 116.847 7.067 0,1974 0,1370
CPA_N77 Rental and leasing services 0,06838 282.555 19.320 0,2014 0,1330
CPA_N78 Employment services 0,02504 160.719 4.024 0,0851 0,0600
CPA_N79 Travel agency, tour operator and other reservation services and related services 0,01471 96.464 1.419 0,3059 0,2911
CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services0,03351 383.739 12.859 0,1585 0,1250
CPA_O84 Public administration and defence services; compulsory social security services 0,02656 1.071.057 28.452 0,1318 0,1052
CPA_P85 Education services 0,03061 727.104 22.258 0,0955 0,0649
CPA_Q86 Human health services 0,01973 892.310 17.607 0,1178 0,0981
CPA_Q87_Q88 Residential care services; social work services without accommodation 0,03334 366.271 12.212 0,1192 0,0858
CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services0,02421 170.056 4.117 0,1400 0,1158
CPA_R93 Sporting services and amusement and recreation services 0,04036 100.575 4.059 0,1926 0,1523
CPA_S94 Services furnished by membership organisations 0,02695 116.410 3.137 0,1342 0,1073
CPA_S95 Repair services of computers and personal and household goods 0,08512 34.674 2.951 0,2181 0,1330
CPA_S96 Other personal services 0,04392 140.274 6.160 0,1429 0,0990
CPA_T Services of households as employers; undifferentiated goods and services produced by households for own use 0,01763 54.671 964 0,0866 0,0689
Total 23.577.515 3.128.955
Results for EU-27 for the year 2011
Analysis and quantification of a new fiscally neutral European tax
15
The results show the highest cumulative CO2 content for the products electricity, gas, steam and air
conditioning, other non-metallic mineral products, air transport services, basic metals and fish and
other fishing products, aquaculture products, support services to fishing. One million euros of
electricity, gas, steam and air conditioning generates (directly and indirectly) 2.599 tonnes of CO2
emissions. The direct CO2 emissions per million euros of the products electricity, gas, steam and air
conditioning equal 1.753 tonnes. It is the product with the highest content of CO2. The total CO2
emissions generated by product electricity, gas, steam and air conditioning in 2011 have been
1.150.191 thousand tonnes. Interpreting this result we have to take into account that electricity is a
product that is produced in different ways with significantly different environmental impacts.
Therefore for further and deeper analysis we will urgently need more disaggregated data than they
were to our disposal from Eurostat for the current analysis.
Other products with high cumulative CO2 content are other non-metallic mineral products, air
transport services (product with a high direct emission), water transport services, Coke and refined
petroleum products, basic metals, chemicals and chemical products and paper and paper products
with high indirect CO2 content, as can be seen in column 5.
From the total emissions’ point of view (described in column 3 of Table 2) CO2 intensive products are
land transport services and transport services via pipelines, other non-metallic mineral products,
basic metals, coke and refined petroleum products, chemicals and chemical products, air transport
services and water transport services with total amount of CO2 emissions more than 100.000
thousand tonnes.
Following the definition of the EU tax in the Preliminary Draft Opinion (2015) [3] it is irrelevant
whether all or part of the production process takes place inside or outside the EU. For this reason we
use the input-output table including imports assuming that the imported goods are produced with the
same technology as in the EU. For deeper analysis we would need additional and more disaggregated
data like world input-output database. For estimation of the total emission generated by the final use
and for the enumeration of the tax rate we excluded– following the definition of the EU tax – the
goods and services exported from the EU from our computation. The total emissions generated by
final demand including imported goods, but excluding exports are given in Table 3.
Analysis and quantification of a new fiscally neutral European tax
16
Table 3: CO2 emissions generated by final use
Source: IWI (2016), Computations based on Eurostat, Input-Output-Tables 2011 for EU-27
Total final use
(incl. imports)
at basic prices
(in million euros)
Total final use
(excl. exports)
at basic prices
(in million euros)
Total CO2 emissions
generated through
final use including
imports
(excl. exports)
(in 1000 tonnes)
CPA_A01 Products of agriculture, hunting and related services 132.055 115.552 83.394
CPA_A02 Products of forestry, logging and related services 11.353 10.715 3.096
CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing 8.734 7.938 8.093
CPA_B Mining and quarrying 40.610 16.905 161.728
CPA_C10-C12 Food, beverages and tobacco products 601.649 535.217 62.746
CPA_C13-C15 Textiles, wearing apparel, leather and related products 215.643 171.572 15.003
CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials 24.405 14.763 6.614
CPA_C17 Paper and paper products 42.108 19.724 29.568
CPA_C18 Printing and recording services 5.717 4.486 3.432
CPA_C19 Coke and refined petroleum products 192.910 129.774 148.118
CPA_C20 Chemicals and chemical products 195.283 66.019 124.837
CPA_C21 Basic pharmaceutical products and pharmaceutical preparations 160.013 80.084 6.828
CPA_C22 Rubber and plastic products 59.194 27.553 13.658
CPA_C23 Other non-metallic mineral products 31.326 14.843 184.768
CPA_C24 Basic metals 86.391 12.063 170.465
CPA_C25 Fabricated metal products, except machinery and equipment 107.595 67.246 18.547
CPA_C26 Computer, electronic and optical products 267.513 152.933 5.457
CPA_C27 Electrical equipment 153.142 79.223 6.399
CPA_C28 Machinery and equipment n.e.c. 394.200 196.998 9.093
CPA_C29 Motor vehicles, trailers and semi-trailers 445.124 291.133 9.134
CPA_C30 Other transport equipment 154.511 68.224 2.483
CPA_C31_C32 Furniture and other manufactured goods 184.790 145.748 8.251
CPA_C33 Repair and installation services of machinery and equipment 82.495 75.482 8.461
CPA_D35 Electricity, gas, steam and air conditioning 207.349 189.557 1.131.862
CPA_E36 Natural water; water treatment and supply services 25.483 25.470 7.080
CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services82.369 70.529 51.330
CPA_F Constructions and construction works 1.106.875 1.100.956 82.719
CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles 236.446 220.548 14.636
CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles 512.862 401.625 50.430
CPA_G47 Retail trade services, except of motor vehicles and motorcycles 637.905 607.235 34.135
CPA_H49 Land transport services and transport services via pipelines 205.317 181.441 194.897
CPA_H50 Water transport services 86.713 27.929 62.626
CPA_H51 Air transport services 90.638 56.298 108.551
CPA_H52 Warehousing and support services for transportation 78.029 49.970 26.897
CPA_H53 Postal and courier services 13.802 9.827 5.027
CPA_I Accommodation and food services 569.674 556.891 22.072
CPA_J58 Publishing services 81.915 74.693 2.268
CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services79.872 73.739 2.801
CPA_J61 Telecommunications services 162.670 147.326 3.965
CPA_J62_J63 Computer programming, consultancy and related services; Information services 197.354 152.454 9.364
CPA_K64 Financial services, except insurance and pension funding 222.222 156.445 3.980
CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security 195.919 170.763 921
CPA_K66 Services auxiliary to financial services and insurance services 38.915 15.137 1.585
CPA_L68B Real estate services 653.774 650.040 15.769
CPA_L68A Of which: imputed rents of owner-occupied dwellings 710.547 710.547 2.846
CPA_M69_M70 Legal and accounting services; services of head offices; management consultancy services 87.819 51.341 18.853
CPA_M71 Architectural and engineering services; technical testing and analysis services 98.613 71.247 12.503
CPA_M72 Scientific research and development services 61.214 37.387 7.267
CPA_M73 Advertising and market research services 14.672 1.639 3.443
CPA_M74_M75 Other professional, scientific and technical services and veterinary services 34.686 21.720 6.882
CPA_N77 Rental and leasing services 62.777 34.831 18.837
CPA_N78 Employment services 8.798 4.822 3.888
CPA_N79 Travel agency, tour operator and other reservation services and related services 38.562 36.315 1.362
CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services58.953 30.046 12.273
CPA_O84 Public administration and defence services; compulsory social security services 1.007.395 1.004.913 28.368
CPA_P85 Education services 656.848 653.771 22.124
CPA_Q86 Human health services 836.560 836.136 17.619
CPA_Q87_Q88 Residential care services; social work services without accommodation 338.756 338.708 12.206
CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services146.912 139.673 4.188
CPA_R93 Sporting services and amusement and recreation services 72.159 71.654 4.054
CPA_S94 Services furnished by membership organisations 87.717 87.651 3.120
CPA_S95 Repair services of computers and personal and household goods 20.079 19.102 2.929
CPA_S96 Other personal services 109.420 108.621 6.183
CPA_T Services of households as employers; undifferentiated goods and services produced by households for own use 52.029 51.996 961
TOT_HH Total 13.587.380 11.555.189 3.112.995
Results for EU-27 for the year 2011
Analysis and quantification of a new fiscally neutral European tax
17
The results in column 3 of Table 3 show again the highest total emissions generated by final demand
(excluding exports) by products electricity, gas, steam and air conditioning, followed by land
transport services and transport services via pipelines (a product without very high emission
coefficients), other non-metallic mineral products, basic metals, mining and quarrying and coke and
refined petroleum products. They all show an amount of more than 140.000 thousand tonnes of CO2
emissions in the year 2011.
The total amount of CO2 emissions generated by final demand (excluding exports) in the EU-27 was
3.112.995 thousand tonnes.
Using the input-output table for EU-27 (Version A – including imports) and the results from Table 3
for the year 2011 the tax rate yielding 1 % of GDP (using as proxy for GNI)3 is given as follows:
Figure 3: Estimation of the CO2 tax rate
Source: IWI (2016), Computations based on Eurostat, Input-Output-Tables 2011 for EU-27
In order to generate a total revenue from the CO2 tax yielding 1 % of GDP of the European Union we
would need a tax rate in the amount of 40,69 euros per tonne of CO2.
It is interesting and useful to compare this result with the price of emission certificate from Figure 4.
The current price of 8 euros per tonne of CO2 is the result of the problems in the emission trading
system (caused by very high initial allocation of CO2 certificates). According to Stefan Schleicher
from the University of Graz the price per CO2 certificate should be at least 30 euros per tonne CO2 in
order to be functional.4
3 Because only GDP is directly available from input-output data, GDP was used instead of GNI. In a later stage of the analysis the
calculations need to be refined. 4 Der Standard, January 22th 2016
Total CO2 emissions
generated through final
use including imports
(excl. exports)
(in 1000 tonnes)
GDP of EU-27
in million euros
1% of GDP
in million euros
price per
tonne CO2
in euros
3.112.995 12.667.016 126.670 40,69
Analysis and quantification of a new fiscally neutral European tax
18
Figure 4: EUA price and trading volumes, 2008-20145
Source: KfW & ZEW (2014) using Thomson Reuter Datastream
It is worth to mention, that taking the exports in our simulation the tax rate in the amount of
approximately 30 euro per tonne of CO2 would result from our computations. Therefore the new CO2
tax can be a useful alternative for the CO2 emission trading system.
5
http://www.managingnaturalresources.com/#!The-role-of-CO2-for-European-and-international-climate-policy-/c106n/805A5340-1446-
4B90-B8E0-4437312C503B
Analysis and quantification of a new fiscally neutral European tax
19
4.2 Cost push effect of the new CO2 taxes
Levying the environmental tax on CO2 emissions will increase the cost of primary inputs for the
production of commodities which generates cost-push effects for the prices of all commodities
produced in the economy. For further discussion on introducing the CO2 tax it is useful to see the
share of CO2 tax payments on output value which can be computed as follows:
𝑆ℎ 𝑇(𝐶𝑂2)𝑗 =𝑒𝑗𝑡
𝑥𝑗= 𝑎𝑗
𝑒𝑡
where 𝑒𝑗 denotes the CO2 emitted by the production of commodity 𝑗, 𝑡 is the CO2 tax rate, 𝑥𝑗 the
output value of commodity 𝑗 and 𝑎𝑗𝑒 the direct emission coefficient.
The results of the share of CO2 tax payments can be seen in the second column of Table 4. The
highest share in the amount of 7,13 % is generated by product electricity, gas, steam and air
conditioning, 4,26 % for air transport services and other non-metal mineral products. For most
commodities the share is less than 1 %.
Analysis and quantification of a new fiscally neutral European tax
20
Table 4: Estimation of the share of CO2 tax payments on output value
Source: IWI (2016), Computations based on Eurostat, Input-Output-Tables 2011 for EU-27
direct CO2
emissions
coefficients
(kg/EUR)
share of CO2
tax payments
on output value
CPA_A01 Products of agriculture, hunting and related services 0,22203 0,90%
CPA_A02 Products of forestry, logging and related services 0,09189 0,37%
CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing 0,53328 2,17%
CPA_B Mining and quarrying 0,35143 1,43%
CPA_C10-C12 Food, beverages and tobacco products 0,07012 0,29%
CPA_C13-C15 Textiles, wearing apparel, leather and related products 0,04799 0,20%
CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials0,06013 0,24%
CPA_C17 Paper and paper products 0,19999 0,81%
CPA_C18 Printing and recording services 0,04067 0,17%
CPA_C19 Coke and refined petroleum products 0,39120 1,59%
CPA_C20 Chemicals and chemical products 0,28831 1,17%
CPA_C21 Basic pharmaceutical products and pharmaceutical preparations 0,04446 0,18%
CPA_C22 Rubber and plastic products 0,06124 0,25%
CPA_C23 Other non-metallic mineral products 1,00447 4,09%
CPA_C24 Basic metals 0,50114 2,04%
CPA_C25 Fabricated metal products, except machinery and equipment 0,04556 0,19%
CPA_C26 Computer, electronic and optical products 0,01498 0,06%
CPA_C27 Electrical equipment 0,02674 0,11%
CPA_C28 Machinery and equipment n.e.c. 0,02317 0,09%
CPA_C29 Motor vehicles, trailers and semi-trailers 0,01862 0,08%
CPA_C30 Other transport equipment 0,01647 0,07%
CPA_C31_C32 Furniture and other manufactured goods 0,03995 0,16%
CPA_C33 Repair and installation services of machinery and equipment 0,03895 0,16%
CPA_D35 Electricity, gas, steam and air conditioning 1,75303 7,13%
CPA_E36 Natural water; water treatment and supply services 0,14110 0,57%
CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services0,25366 1,03%
CPA_F Constructions and construction works 0,04889 0,20%
CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles 0,04365 0,18%
CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles 0,04892 0,20%
CPA_G47 Retail trade services, except of motor vehicles and motorcycles 0,04572 0,19%
CPA_H49 Land transport services and transport services via pipelines 0,36738 1,49%
CPA_H50 Water transport services 0,61901 2,52%
CPA_H51 Air transport services 1,04768 4,26%
CPA_H52 Warehousing and support services for transportation 0,06723 0,27%
CPA_H53 Postal and courier services 0,06092 0,25%
CPA_I Accommodation and food services 0,03324 0,14%
CPA_J58 Publishing services 0,01554 0,06%
CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services0,01883 0,08%
CPA_J61 Telecommunications services 0,01154 0,05%
CPA_J62_J63 Computer programming, consultancy and related services; Information services 0,02296 0,09%
CPA_K64 Financial services, except insurance and pension funding 0,00558 0,02%
CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security 0,00328 0,01%
CPA_K66 Services auxiliary to financial services and insurance services 0,00943 0,04%
CPA_L68B Real estate services 0,01404 0,06%
CPA_L68A Of which: imputed rents of owner-occupied dwellings 0,00400 0,02%
CPA_M69_M70 Legal and accounting services; services of head offices; management consultancy services 0,03179 0,13%
CPA_M71 Architectural and engineering services; technical testing and analysis services 0,04153 0,17%
CPA_M72 Scientific research and development services 0,05295 0,22%
CPA_M73 Advertising and market research services 0,02101 0,09%
CPA_M74_M75 Other professional, scientific and technical services and veterinary services 0,06048 0,25%
CPA_N77 Rental and leasing services 0,06838 0,28%
CPA_N78 Employment services 0,02504 0,10%
CPA_N79 Travel agency, tour operator and other reservation services and related services 0,01471 0,06%
CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services0,03351 0,14%
CPA_O84 Public administration and defence services; compulsory social security services 0,02656 0,11%
CPA_P85 Education services 0,03061 0,12%
CPA_Q86 Human health services 0,01973 0,08%
CPA_Q87_Q88 Residential care services; social work services without accommodation 0,03334 0,14%
CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services0,02421 0,10%
CPA_R93 Sporting services and amusement and recreation services 0,04036 0,16%
CPA_S94 Services furnished by membership organisations 0,02695 0,11%
CPA_S95 Repair services of computers and personal and household goods 0,08512 0,35%
CPA_S96 Other personal services 0,04392 0,18%
CPA_T Services of households as employers; undifferentiated goods and services produced by households for own use 0,01763 0,07%
Results for EU-27 for the year 2011
Analysis and quantification of a new fiscally neutral European tax
21
In the Leontief price model6 changes in the cost of primary inputs are carried forward in the chain of
transactions taking into account all the interdependencies in an economy. As shown in Section 3 in
our study by applying this model the cost-push effects can be estimated:
∆𝑝 = ∆𝑘(𝐼 − 𝐴)−1
where ∆𝑘 denotes the change in the cost of primary inputs caused by introducing of CO2 tax:
∆𝑘 = 𝑡𝑒(𝐶𝑂2)�̂�−1
where 𝑥 is the diagonal matrix of the commodity outputs and ∆𝑝 describes the changes of the
commodity prices:
∆𝑝 = 𝑡𝑎𝑒(𝐼 − 𝐴)−1 = 𝑡𝑟𝑒
In accordance with economic intuition the price changes are determined by the total CO2 coefficients
(or requirements). Consequently the highest cost-push effect can be observed for the products
electricity, gas, steam and air conditioning (10,58 %), other non-metal mineral products (6,21 %),
and air transport services with more than 5 % (see Table 5). Summarising the introduction of CO2
taxes will lead to significant changes of the relative prices.
6 see Miller Blair (2009) [5]
Analysis and quantification of a new fiscally neutral European tax
22
Table 5: Cost-push effects of introducing CO2 tax
Source: IWI (2016), Computations based on Eurostat, Input-Output-Tables 2011 for EU-27
total CO2
coefficients
(kg/EUR)
Cost push
effects
CPA_A01 Products of agriculture, hunting and related services 0,4916 2,00%
CPA_A02 Products of forestry, logging and related services 0,2238 0,91%
CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing 0,8344 3,40%
CPA_B Mining and quarrying 0,5877 2,39%
CPA_C10-C12 Food, beverages and tobacco products 0,4063 1,65%
CPA_C13-C15 Textiles, wearing apparel, leather and related products 0,3242 1,32%
CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials 0,3637 1,48%
CPA_C17 Paper and paper products 0,6860 2,79%
CPA_C18 Printing and recording services 0,3206 1,30%
CPA_C19 Coke and refined petroleum products 0,9686 3,94%
CPA_C20 Chemicals and chemical products 0,7727 3,14%
CPA_C21 Basic pharmaceutical products and pharmaceutical preparations 0,2791 1,14%
CPA_C22 Rubber and plastic products 0,4465 1,82%
CPA_C23 Other non-metallic mineral products 1,5266 6,21%
CPA_C24 Basic metals 1,1739 4,78%
CPA_C25 Fabricated metal products, except machinery and equipment 0,4210 1,71%
CPA_C26 Computer, electronic and optical products 0,2508 1,02%
CPA_C27 Electrical equipment 0,3467 1,41%
CPA_C28 Machinery and equipment n.e.c. 0,3160 1,29%
CPA_C29 Motor vehicles, trailers and semi-trailers 0,3425 1,39%
CPA_C30 Other transport equipment 0,2955 1,20%
CPA_C31_C32 Furniture and other manufactured goods 0,2847 1,16%
CPA_C33 Repair and installation services of machinery and equipment 0,2935 1,19%
CPA_D35 Electricity, gas, steam and air conditioning 2,5990 10,58%
CPA_E36 Natural water; water treatment and supply services 0,4405 1,79%
CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services0,5065 2,06%
CPA_F Constructions and construction works 0,3158 1,28%
CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles 0,2040 0,83%
CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles 0,2314 0,94%
CPA_G47 Retail trade services, except of motor vehicles and motorcycles 0,1974 0,80%
CPA_H49 Land transport services and transport services via pipelines 0,5868 2,39%
CPA_H50 Water transport services 1,0388 4,23%
CPA_H51 Air transport services 1,3939 5,67%
CPA_H52 Warehousing and support services for transportation 0,2823 1,15%
CPA_H53 Postal and courier services 0,2119 0,86%
CPA_I Accommodation and food services 0,2136 0,87%
CPA_J58 Publishing services 0,1661 0,68%
CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services0,1797 0,73%
CPA_J61 Telecommunications services 0,1402 0,57%
CPA_J62_J63 Computer programming, consultancy and related services; Information services 0,1315 0,53%
CPA_K64 Financial services, except insurance and pension funding 0,0765 0,31%
CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security 0,0918 0,37%
CPA_K66 Services auxiliary to financial services and insurance services 0,0913 0,37%
CPA_L68B Real estate services 0,0922 0,38%
CPA_L68A Of which: imputed rents of owner-occupied dwellings 0,0671 0,27%
CPA_M69_M70 Legal and accounting services; services of head offices; management consultancy services 0,1306 0,53%
CPA_M71 Architectural and engineering services; technical testing and analysis services 0,1748 0,71%
CPA_M72 Scientific research and development services 0,2297 0,93%
CPA_M73 Advertising and market research services 0,1603 0,65%
CPA_M74_M75 Other professional, scientific and technical services and veterinary services 0,1974 0,80%
CPA_N77 Rental and leasing services 0,2014 0,82%
CPA_N78 Employment services 0,0851 0,35%
CPA_N79 Travel agency, tour operator and other reservation services and related services 0,3059 1,24%
CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services0,1585 0,65%
CPA_O84 Public administration and defence services; compulsory social security services 0,1318 0,54%
CPA_P85 Education services 0,0955 0,39%
CPA_Q86 Human health services 0,1178 0,48%
CPA_Q87_Q88 Residential care services; social work services without accommodation 0,1192 0,48%
CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services0,1400 0,57%
CPA_R93 Sporting services and amusement and recreation services 0,1926 0,78%
CPA_S94 Services furnished by membership organisations 0,1342 0,55%
CPA_S95 Repair services of computers and personal and household goods 0,2181 0,89%
CPA_S96 Other personal services 0,1429 0,58%
CPA_T Services of households as employers; undifferentiated goods and services produced by households for own use 0,0866 0,35%
Results for EU-27 for the year 2011
Analysis and quantification of a new fiscally neutral European tax
23
4.3 Fiscal neutrality of the new European CO2 tax
A change in the labour cost (as a part of primary cost) leads to price changes which can be estimated
by using the Leontief price model in a similar way as for the introduction of the CO2 tax.
The condition on fiscal neutrality on a European tax as an EU own resource has been formulated by
the following equation:
1% 𝐺𝐷𝑃 (𝐸𝑈27) = 𝑡𝑒𝑟𝑒𝑦𝐷 = 𝑡𝑤𝑟𝑤𝑦
where 𝑦𝐷 is the final demand excluding exports (as required in the conditions for the determination of
the CO2 tax rate). The rate 𝑡𝑤 by which the total amount of fiscal revenue generated by the imposing
CO2 tax 𝑡𝑒 will be compensated can be estimated as:
𝑡𝑤 = 𝑡𝑒
𝑟𝑒𝑦𝐷
𝑟𝑤𝑦
Using the input-output data for EU-27 for the year 2011 the reduction of the labour costs by -2,03 %
will compensate the tax revenue generated by the CO2 tax of 40,69 euros per tonne of CO2 with a
positive effect for the environment and the labour market.
Using the data from the input-output tables for EU-27 for the year 2011 and our results from the
previous section with the tax rate of 40,69 per tonne of CO2 emissions the necessary reduction rate for
labour costs can be estimated (see Table 6). The compensation of employees for EU-27 sums up to
6.226.326 million euros. Then
𝑡𝑤 =1% 𝐺𝐷𝑃
6.226.336=
126.670
6.226.326= 0,0203
The labour cost (compensation of employees) should be reduced by -2,03 % in order to match the
imposing of a CO2 tax of 40,69 euros per tonne of CO2. This result is related to the average of all 27
countries of European Union and to the proportional reduction of wages and salaries as well as
employers’ social contributions by the same rate of -2,03 %. Due to lack of appropriate data and the
time given for our disposal, we were not able to simulate the different scenario of this compensation
mechanism. In any case, the decreasing labour costs would stimulate the demand for labour and
contribute to decreasing unemployment rate, which with imposing of CO2 tax supporting the
improvement of environmental quality will result in “double dividend” (see the result by Conrad &
Schmidt (1998) [1]).
Analysis and quantification of a new fiscally neutral European tax
24
Table 6: Data for the labour costs related to the particular commodities
Source: IWI (2016), Computations based on Eurostat, Input-Output-Tables 2011 for EU-27
Compensation
of employees
(in million euros)
Wages and
salaries
(in million euros)
employers'
social
contributions
(in million euros)
CPA_A01 Products of agriculture, hunting and related services 41.552 33.889 7.663
CPA_A02 Products of forestry, logging and related services 6.276 5.083 1.193
CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing 2.482 2.075 407
CPA_B Mining and quarrying 24.265 19.104 5.160
CPA_C10-C12 Food, beverages and tobacco products 130.360 104.125 26.236
CPA_C13-C15 Textiles, wearing apparel, leather and related products 41.619 32.724 8.894
CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials 20.728 16.674 4.054
CPA_C17 Paper and paper products 26.199 20.888 5.311
CPA_C18 Printing and recording services 22.507 18.006 4.501
CPA_C19 Coke and refined petroleum products 12.906 10.057 2.849
CPA_C20 Chemicals and chemical products 61.796 46.335 15.461
CPA_C21 Basic pharmaceutical products and pharmaceutical preparations 28.900 22.576 6.324
CPA_C22 Rubber and plastic products 49.907 39.783 10.124
CPA_C23 Other non-metallic mineral products 39.773 31.104 8.669
CPA_C24 Basic metals 44.270 34.574 9.696
CPA_C25 Fabricated metal products, except machinery and equipment 110.518 87.567 22.951
CPA_C26 Computer, electronic and optical products 52.079 41.240 10.838
CPA_C27 Electrical equipment 52.782 41.773 11.008
CPA_C28 Machinery and equipment n.e.c. 115.956 92.241 23.715
CPA_C29 Motor vehicles, trailers and semi-trailers 93.036 72.442 20.594
CPA_C30 Other transport equipment 33.178 25.589 7.589
CPA_C31_C32 Furniture and other manufactured goods 46.844 37.660 9.184
CPA_C33 Repair and installation services of machinery and equipment 59.290 46.898 12.392
CPA_D35 Electricity, gas, steam and air conditioning 64.368 47.496 16.872
CPA_E36 Natural water; water treatment and supply services 10.457 8.045 2.412
CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services46.044 36.131 9.913
CPA_F Constructions and construction works 379.525 303.436 76.089
CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles 117.006 95.581 21.425
CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles 318.057 253.162 64.895
CPA_G47 Retail trade services, except of motor vehicles and motorcycles 285.428 232.368 53.060
CPA_H49 Land transport services and transport services via pipelines 154.728 124.125 30.603
CPA_H50 Water transport services 12.810 11.019 1.791
CPA_H51 Air transport services 22.599 18.019 4.580
CPA_H52 Warehousing and support services for transportation 100.048 79.325 20.723
CPA_H53 Postal and courier services 45.444 34.445 11.000
CPA_I Accommodation and food services 179.454 149.620 29.834
CPA_J58 Publishing services 43.227 34.597 8.630
CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services29.001 22.749 6.253
CPA_J61 Telecommunications services 55.862 43.797 12.065
CPA_J62_J63 Computer programming, consultancy and related services; Information services 169.164 135.198 33.966
CPA_K64 Financial services, except insurance and pension funding 211.962 163.589 48.373
CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security 50.685 39.539 11.147
CPA_K66 Services auxiliary to financial services and insurance services 57.860 43.658 14.202
CPA_L68B Real estate services 80.074 63.941 16.134
CPA_L68A Of which: imputed rents of owner-occupied dwellings 24.298 19.645 4.653
CPA_M69_M70 Legal and accounting services; services of head offices; management consultancy services 191.988 153.074 38.914
CPA_M71 Architectural and engineering services; technical testing and analysis services 99.710 80.477 19.233
CPA_M72 Scientific research and development services 56.589 44.064 12.526
CPA_M73 Advertising and market research services 42.341 34.113 8.229
CPA_M74_M75 Other professional, scientific and technical services and veterinary services 28.499 23.476 5.024
CPA_N77 Rental and leasing services 42.990 35.127 7.863
CPA_N78 Employment services 100.571 79.238 21.334
CPA_N79 Travel agency, tour operator and other reservation services and related services 17.146 14.529 2.617
CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services147.276 116.124 31.151
CPA_O84 Public administration and defence services; compulsory social security services 547.592 404.789 142.803
CPA_P85 Education services 515.933 386.348 129.585
CPA_Q86 Human health services 393.817 317.083 76.734
CPA_Q87_Q88 Residential care services; social work services without accommodation 224.822 180.394 44.428
CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services48.217 38.448 9.768
CPA_R93 Sporting services and amusement and recreation services 32.202 25.110 7.092
CPA_S94 Services furnished by membership organisations 65.500 52.769 12.731
CPA_S95 Repair services of computers and personal and household goods 12.231 9.954 2.277
CPA_S96 Other personal services 32.611 26.857 5.754
CPA_T Services of households as employers; undifferentiated goods and services produced by households for own use 50.965 44.405 6.560
Total 6.226.326 4.908.270 1.318.055
From the EU-27 input-output table for the year 2011
Analysis and quantification of a new fiscally neutral European tax
25
Considering the reduction of employers’ social contribution only, in order to compensate the amount
generated by the CO2 tax, a reduction rate by -9,61 % should be necessary. Because the employers’
social contribution is a part of the overall labour cost, the reduction rate must obviously be higher.
The price effects generated by the proportional reduction of labour cost can be estimated by the
Leontief price model:
∆𝑝 = ∆𝑘(𝐼 − 𝐴)−1 where ∆𝑘 = 𝑡𝑤𝑥−1 = 𝑡𝑎𝑤
The results of model computation from Table 7 show the decreasing prices for labour intensive
products like education services (-1,64 %), residential care services; social work services without
accommodation (-1,58 %), postal and courier services (-1,53 %) and for the most products
approximately by -1,0 %. In this way the price increasing effect of introducing the new CO2 tax can
be mitigated.
The overall price taking into account simultaneously the introduction of CO2 tax and the reduction of
labour cost is described as follows:
∆𝑝 = (𝑡𝑎𝑒 − 𝑡𝑤𝑎𝑤)(𝐼 − 𝐴)−1
= 𝑡𝑎𝑒(𝐼 − 𝐴)−1 − 𝑡𝑤𝑎𝑤(𝐼 − 𝐴)−1
= 𝑡𝑟𝑒 − 𝑡𝑤𝑟𝑤
Analysis and quantification of a new fiscally neutral European tax
26
Table 7: Price effects of the reduction of labour costs
Source: IWI (2016), Computations based on Eurostat, Input-Output-Tables 2011 for EU-27
Output at basic
prices
(in million euros)
Compensation
of employees
(in million euros)
Direct
compensation
coefficients
Total
compensation
coefficients
price effects of
the reducing of
the
compensation of
employees
CPA_A01 Products of agriculture, hunting and related services 345.895 41.552 0,12013 0,36879 -0,75%
CPA_A02 Products of forestry, logging and related services 33.205 6.276 0,18901 0,35621 -0,72%
CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing 12.216 2.482 0,20319 0,44808 -0,91%
CPA_B Mining and quarrying 152.046 24.265 0,15959 0,32642 -0,66%
CPA_C10-C12 Food, beverages and tobacco products 898.708 130.360 0,14505 0,49243 -1,00%
CPA_C13-C15 Textiles, wearing apparel, leather and related products 213.617 41.619 0,19483 0,55528 -1,13%
CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials109.699 20.728 0,18895 0,51944 -1,06%
CPA_C17 Paper and paper products 163.028 26.199 0,16070 0,52108 -1,06%
CPA_C18 Printing and recording services 87.822 22.507 0,25628 0,56289 -1,15%
CPA_C19 Coke and refined petroleum products 368.854 12.906 0,03499 0,38191 -0,78%
CPA_C20 Chemicals and chemical products 494.219 61.796 0,12504 0,48790 -0,99%
CPA_C21 Basic pharmaceutical products and pharmaceutical preparations 181.677 28.900 0,15907 0,46537 -0,95%
CPA_C22 Rubber and plastic products 235.239 49.907 0,21215 0,55123 -1,12%
CPA_C23 Other non-metallic mineral products 188.596 39.773 0,21089 0,52646 -1,07%
CPA_C24 Basic metals 362.734 44.270 0,12205 0,51555 -1,05%
CPA_C25 Fabricated metal products, except machinery and equipment 440.268 110.518 0,25103 0,58077 -1,18%
CPA_C26 Computer, electronic and optical products 240.051 52.079 0,21695 0,60037 -1,22%
CPA_C27 Electrical equipment 256.871 52.782 0,20548 0,56599 -1,15%
CPA_C28 Machinery and equipment n.e.c. 521.800 115.956 0,22222 0,57899 -1,18%
CPA_C29 Motor vehicles, trailers and semi-trailers 619.468 93.036 0,15019 0,57134 -1,16%
CPA_C30 Other transport equipment 177.821 33.178 0,18658 0,61679 -1,25%
CPA_C31_C32 Furniture and other manufactured goods 181.587 46.844 0,25797 0,56088 -1,14%
CPA_C33 Repair and installation services of machinery and equipment 223.746 59.290 0,26499 0,58931 -1,20%
CPA_D35 Electricity, gas, steam and air conditioning 656.116 64.368 0,09810 0,38201 -0,78%
CPA_E36 Natural water; water treatment and supply services 50.209 10.457 0,20826 0,43314 -0,88%
CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services209.417 46.044 0,21987 0,50081 -1,02%
CPA_F Constructions and construction works 1.699.591 379.525 0,22330 0,52286 -1,06%
CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles 356.490 117.006 0,32822 0,55583 -1,13%
CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles 1.137.200 318.057 0,27968 0,52440 -1,07%
CPA_G47 Retail trade services, except of motor vehicles and motorcycles 779.347 285.428 0,36624 0,55565 -1,13%
CPA_H49 Land transport services and transport services via pipelines 552.501 154.728 0,28005 0,53281 -1,08%
CPA_H50 Water transport services 162.968 12.810 0,07860 0,47736 -0,97%
CPA_H51 Air transport services 118.617 22.599 0,19052 0,55968 -1,14%
CPA_H52 Warehousing and support services for transportation 406.148 100.048 0,24634 0,52809 -1,07%
CPA_H53 Postal and courier services 85.404 45.444 0,53211 0,75342 -1,53%
CPA_I Accommodation and food services 661.924 179.454 0,27111 0,49154 -1,00%
CPA_J58 Publishing services 150.208 43.227 0,28778 0,55737 -1,13%
CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services155.203 29.001 0,18686 0,47433 -0,96%
CPA_J61 Telecommunications services 352.501 55.862 0,15847 0,42458 -0,86%
CPA_J62_J63 Computer programming, consultancy and related services; Information services 446.720 169.164 0,37868 0,62490 -1,27%
CPA_K64 Financial services, except insurance and pension funding 764.064 211.962 0,27741 0,49809 -1,01%
CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security 298.410 50.685 0,16985 0,48959 -1,00%
CPA_K66 Services auxiliary to financial services and insurance services 196.988 57.860 0,29372 0,54871 -1,12%
CPA_L68B Real estate services 1.141.706 80.074 0,07014 0,21655 -0,44%
CPA_L68A Of which: imputed rents of owner-occupied dwellings 710.547 24.298 0,03420 0,16578 -0,34%
CPA_M69_M70 Legal and accounting services; services of head offices; management consultancy services 622.681 191.988 0,30833 0,52073 -1,06%
CPA_M71 Architectural and engineering services; technical testing and analysis services 323.514 99.710 0,30821 0,57370 -1,17%
CPA_M72 Scientific research and development services 144.262 56.589 0,39227 0,66905 -1,36%
CPA_M73 Advertising and market research services 171.888 42.341 0,24633 0,54176 -1,10%
CPA_M74_M75 Other professional, scientific and technical services and veterinary services 116.847 28.499 0,24390 0,48007 -0,98%
CPA_N77 Rental and leasing services 282.555 42.990 0,15215 0,36840 -0,75%
CPA_N78 Employment services 160.719 100.571 0,62576 0,75726 -1,54%
CPA_N79 Travel agency, tour operator and other reservation services and related services 96.464 17.146 0,17774 0,54194 -1,10%
CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services383.739 147.276 0,38379 0,61683 -1,25%
CPA_O84 Public administration and defence services; compulsory social security services 1.071.057 547.592 0,51126 0,67611 -1,38%
CPA_P85 Education services 727.104 515.933 0,70957 0,80510 -1,64%
CPA_Q86 Human health services 892.310 393.817 0,44135 0,60532 -1,23%
CPA_Q87_Q88 Residential care services; social work services without accommodation 366.271 224.822 0,61381 0,77817 -1,58%
CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services170.056 48.217 0,28353 0,48363 -0,98%
CPA_R93 Sporting services and amusement and recreation services 100.575 32.202 0,32018 0,54927 -1,12%
CPA_S94 Services furnished by membership organisations 116.410 65.500 0,56266 0,73661 -1,50%
CPA_S95 Repair services of computers and personal and household goods 34.674 12.231 0,35275 0,56831 -1,16%
CPA_S96 Other personal services 140.274 32.611 0,23248 0,34931 -0,71%
CPA_T Services of households as employers; undifferentiated goods and services produced by households for own use 54.671 50.965 0,93221 1,01157 -2,06%
Total 23.577.515 6.226.326
Results for EU-27 for the year 2011
Analysis and quantification of a new fiscally neutral European tax
27
The results for the overall price effect contained in
Table 8 show the decreasing prices for the labour intensive services like education services (-1,25 %),
employment services (-1,19 %) and residential care services; social work services without
accommodation (-1,10 %) and increasing prices of CO2 intensive products like electricity, gas, steam
and air conditioning (9,80 %), other non-metal mineral products (5,14 %) and air transport services
(4,53 %). In this way the compensating effect of labour cost reduction is demonstrated. The results
show the mitigating effect of the compensation mechanism for the product prices, but the overall
effect for the CO2 emission intensive products is still significant. These are the products with higher
labour productivity and lower compensation of employees (see Table 6) compared to the above
mentioned product and services with higher labour intensity and lower CO2 emission content.
The effect of changing relative prices for the behaviour of consumers and producers is the first step in
analysing the question on the economic effects of introducing of CO2 emission tax. The scope of this
question is very broad and will require additional models and methodological approaches and more
time for our disposal. Appropriate methodology is provided by computable general equilibrium
(CGE) models as demonstrated by Palenik - Miklosovic. (2015) [6].
Another example for analysis of economic effects of carbon dioxide policy for the European Union is
the already mentioned paper by Conrad & Schmidt (1998) [1]. The objective of this paper is to
quantify the economic effects of introducing carbon-reduction policies in the European Union. For
this purpose they used linked applied general equilibrium (AGE) for 11 EU member countries. This
approach enables them to measure the change in competitiveness for domestic industry, the effect on
growth, employment and inflation in member countries; and the cost and benefits of a coordinated
versus an uncoordinated approach to adhere to an EU target of carbon dioxide (CO2) emissions. In the
model the CO2 tax revenue is used to reduce employers’ contribution to social insurance with a hope
for double dividend. In one simulation each country implements a CO2 tax to limit CO2 emissions by
10 %. As an alternative to this uncoordinated approach, they calculated an overall CO2 tax for the
European Union to reduce the CO2 emissions of the EU by 10 %.
The elaboration of such model is very time consuming and data intensive, but it can provide very
interesting and useful results related to economic effects of introducing a new European CO2 tax and
offers topics for further analysis and scientific studies. For this purpose the present study can provide
a good starting point.
Analysis and quantification of a new fiscally neutral European tax
28
Table 8: Price effects of the simultaneously introducing a CO2 tax and reducing labour costs
Source: IWI (2016), Computations based on Eurostat, Input-Output-Tables 2011 for EU-27
Cost push
effects
price effects of
reducing the
labour costs
Overall price
effects
CPA_A01 Products of agriculture, hunting and related services 2,00% -0,75% 1,25%
CPA_A02 Products of forestry, logging and related services 0,91% -0,72% 0,19%
CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing 3,40% -0,91% 2,48%
CPA_B Mining and quarrying 2,39% -0,66% 1,73%
CPA_C10-C12 Food, beverages and tobacco products 1,65% -1,00% 0,65%
CPA_C13-C15 Textiles, wearing apparel, leather and related products 1,32% -1,13% 0,19%
CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials 1,48% -1,06% 0,42%
CPA_C17 Paper and paper products 2,79% -1,06% 1,73%
CPA_C18 Printing and recording services 1,30% -1,15% 0,16%
CPA_C19 Coke and refined petroleum products 3,94% -0,78% 3,16%
CPA_C20 Chemicals and chemical products 3,14% -0,99% 2,15%
CPA_C21 Basic pharmaceutical products and pharmaceutical preparations 1,14% -0,95% 0,19%
CPA_C22 Rubber and plastic products 1,82% -1,12% 0,70%
CPA_C23 Other non-metallic mineral products 6,21% -1,07% 5,14%
CPA_C24 Basic metals 4,78% -1,05% 3,73%
CPA_C25 Fabricated metal products, except machinery and equipment 1,71% -1,18% 0,53%
CPA_C26 Computer, electronic and optical products 1,02% -1,22% -0,20%
CPA_C27 Electrical equipment 1,41% -1,15% 0,26%
CPA_C28 Machinery and equipment n.e.c. 1,29% -1,18% 0,11%
CPA_C29 Motor vehicles, trailers and semi-trailers 1,39% -1,16% 0,23%
CPA_C30 Other transport equipment 1,20% -1,25% -0,05%
CPA_C31_C32 Furniture and other manufactured goods 1,16% -1,14% 0,02%
CPA_C33 Repair and installation services of machinery and equipment 1,19% -1,20% 0,00%
CPA_D35 Electricity, gas, steam and air conditioning 10,58% -0,78% 9,80%
CPA_E36 Natural water; water treatment and supply services 1,79% -0,88% 0,91%
CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services2,06% -1,02% 1,04%
CPA_F Constructions and construction works 1,28% -1,06% 0,22%
CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles 0,83% -1,13% -0,30%
CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles 0,94% -1,07% -0,13%
CPA_G47 Retail trade services, except of motor vehicles and motorcycles 0,80% -1,13% -0,33%
CPA_H49 Land transport services and transport services via pipelines 2,39% -1,08% 1,30%
CPA_H50 Water transport services 4,23% -0,97% 3,26%
CPA_H51 Air transport services 5,67% -1,14% 4,53%
CPA_H52 Warehousing and support services for transportation 1,15% -1,07% 0,07%
CPA_H53 Postal and courier services 0,86% -1,53% -0,67%
CPA_I Accommodation and food services 0,87% -1,00% -0,13%
CPA_J58 Publishing services 0,68% -1,13% -0,46%
CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services0,73% -0,96% -0,23%
CPA_J61 Telecommunications services 0,57% -0,86% -0,29%
CPA_J62_J63 Computer programming, consultancy and related services; Information services 0,53% -1,27% -0,74%
CPA_K64 Financial services, except insurance and pension funding 0,31% -1,01% -0,70%
CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security 0,37% -1,00% -0,62%
CPA_K66 Services auxiliary to financial services and insurance services 0,37% -1,12% -0,74%
CPA_L68B Real estate services 0,38% -0,44% -0,07%
CPA_L68A Of which: imputed rents of owner-occupied dwellings 0,27% -0,34% -0,06%
CPA_M69_M70 Legal and accounting services; services of head offices; management consultancy services 0,53% -1,06% -0,53%
CPA_M71 Architectural and engineering services; technical testing and analysis services 0,71% -1,17% -0,46%
CPA_M72 Scientific research and development services 0,93% -1,36% -0,43%
CPA_M73 Advertising and market research services 0,65% -1,10% -0,45%
CPA_M74_M75 Other professional, scientific and technical services and veterinary services 0,80% -0,98% -0,17%
CPA_N77 Rental and leasing services 0,82% -0,75% 0,07%
CPA_N78 Employment services 0,35% -1,54% -1,19%
CPA_N79 Travel agency, tour operator and other reservation services and related services 1,24% -1,10% 0,14%
CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services0,65% -1,25% -0,61%
CPA_O84 Public administration and defence services; compulsory social security services 0,54% -1,38% -0,84%
CPA_P85 Education services 0,39% -1,64% -1,25%
CPA_Q86 Human health services 0,48% -1,23% -0,75%
CPA_Q87_Q88 Residential care services; social work services without accommodation 0,48% -1,58% -1,10%
CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services0,57% -0,98% -0,41%
CPA_R93 Sporting services and amusement and recreation services 0,78% -1,12% -0,33%
CPA_S94 Services furnished by membership organisations 0,55% -1,50% -0,95%
CPA_S95 Repair services of computers and personal and household goods 0,89% -1,16% -0,27%
CPA_S96 Other personal services 0,58% -0,71% -0,13%
CPA_T Services of households as employers; undifferentiated goods and services produced by households for own use 0,35% -2,06% -1,71%
Results for EU-27 for the year 2011
Analysis and quantification of a new fiscally neutral European tax
29
4.4 Comparison of the cost-push effects for particular EU countries
In order to see the cost-push effects of the new European CO2 tax, we will provide exemplary results
for several EU Member countries. The selection of the countries is given by the availability of the
data. Unfortunately, Eurostat does not have (complete) Input-Output Tables for each of the Member
states, so we were not able to simulate all countries. Due to the lack of Input-Output tables for the EU
countries for the year 2011, we used tables for the year 2010. In order to get valid results, we also
simulated our model using the input-output tables for EU-27 (Version A – including imports) for the
year 2010.
Following the methodology mentioned above the simulation yields to a total amount of 3.178.671
thousand tonnes of CO2 emissions generated by final demand (excluding exports) in the EU-27 for the
year 2010. As shown in Figure 5 the tax rate yielding 1 % of GDP for the year 2010 is given as
follows:
Figure 5: Estimation of the CO2 tax rate (year 2010)
Source: IWI (2016), Computations based on Eurostat, Input-Output-Tables 2010 for EU-27
In order to generate total revenue from CO2 tax yielding 1 % of GDP of European Union we would
need tax rate in the amount of 38,67 euros per tonne of CO2. The slightly lower tax rate compared
to the year 2011 results on one side through higher CO2 emission generated through final use
including imports (excluding exports) in the year 2010 and a lower GDP in the year 2010 on the other
side.
Given the amount of the tax rate of 38,67 euros per tonne of CO2 we are able to calculate the cost-
push effects for several EU Member countries.
In order to demonstrate the big differences in the technology level expressed by the CO2 emission
coefficients, the basic indicators for several countries are presented in Table 9 and Table 10. The
remaining data used for our simulation are given in the appendix.
The Table 9 contains the countries Austria, France, Hungary and Italy, Table 10 shows the countries
Belgium, Germany, Slovenia and Greece. At the first view the data show significant differences in the
emissions across the countries and across the products. From the EU-27 table the product with the
highest CO2 emissions, electricity, gas, steam and air conditioning, show very big differences across
the countries. The direct emission coefficient for this product takes values between 0,33 kg of CO2 per
euro of production (Austria and France) and 5,03 kg of CO2 per euro of production (Greece). The
corresponding emission coefficient for EU-27 is 1,76 kg of CO2 per euro of production.
Total CO2 emissions
generated through final
use including imports
(excl. exports)
(in 1000 tonnes)
GDP of EU-27
in million euros
1% of GDP
in million euros
price per
tonne CO2
in euros
3.178.671 12.292.730 122.927 38,67
Analysis and quantification of a new fiscally neutral European tax
30
Table 9: Direct CO2 emission coefficients for 8 countries (Part 1)
Source: IWI (2016), Computations based on Eurostat, Input-Output-Tables 2010
AUSTRIA FRANCE HUNGARY ITALY
CPA_A01 Products of agriculture, hunting and related services 0,14795 0,13114 0,15597 0,11897
CPA_A02 Products of forestry, logging and related services 0,03086 0,10517 0,19859 0,00841
CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing 0,00109 0,36258 0,18097 0,18247
CPA_B Mining and quarrying 0,10300 0,02160 0,31318 0,05080
CPA_C10-C12 Food, beverages and tobacco products 0,05595 0,06557 0,06585 0,03772
CPA_C13-C15 Textiles, wearing apparel, leather and related products 0,00822 0,02274 0,01510 0,02306
CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials0,03935 0,03691 0,07881 0,04143
CPA_C17 Paper and paper products 0,28279 0,11092 0,04592 0,14521
CPA_C18 Printing and recording services 0,01011 0,03488 0,08898 0,03325
CPA_C19 Coke and refined petroleum products 0,23321 0,30016 0,10807 0,42409
CPA_C20 Chemicals and chemical products 0,15891 0,21477 0,27325 0,11724
CPA_C21 Basic pharmaceutical products and pharmaceutical preparations 0,00183 0,02547 0,05485 0,01547
CPA_C22 Rubber and plastic products 0,01762 0,03874 0,03801 0,03650
CPA_C23 Other non-metallic mineral products 0,63783 0,76037 0,80242 0,76181
CPA_C24 Basic metals 0,50228 0,35595 0,21648 0,19134
CPA_C25 Fabricated metal products, except machinery and equipment 0,04573 0,01680 0,05060 0,01420
CPA_C26 Computer, electronic and optical products 0,00905 0,00379 0,00561 0,00396
CPA_C27 Electrical equipment 0,00905 0,01091 0,03754 0,01306
CPA_C28 Machinery and equipment n.e.c. 0,01037 0,00963 0,03286 0,01135
CPA_C29 Motor vehicles, trailers and semi-trailers 0,00233 0,01005 0,01388 0,00959
CPA_C30 Other transport equipment 0,00227 0,00451 0,04898 0,01090
CPA_C31_C32 Furniture and other manufactured goods 0,01478 0,00932 0,02936 0,03104
CPA_C33 Repair and installation services of machinery and equipment 0,02895 0,01006 0,10451 0,04850
CPA_D35 Electricity, gas, steam and air conditioning 0,33810 0,33740 2,22224 1,17600
CPA_E36 Natural water; water treatment and supply services 0,20434 0,00829 0,13158 0,34221
CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services0,04133 0,27744 0,12923 0,22796
CPA_F Constructions and construction works 0,06367 0,02873 0,08402 0,02909
CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles 0,01954 0,07836 0,26751 0,02503
CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles 0,03204 0,02019 0,09294 0,03186
CPA_G47 Retail trade services, except of motor vehicles and motorcycles 0,02073 0,03452 0,05671 0,03985
CPA_H49 Land transport services and transport services via pipelines 0,17499 0,25474 0,24921 0,19937
CPA_H50 Water transport services 0,01053 0,24046 0,02543 1,76874
CPA_H51 Air transport services 0,61978 0,68206 0,00702 0,51267
CPA_H52 Warehousing and support services for transportation 0,03620 0,00967 0,11490 0,11362
CPA_H53 Postal and courier services 0,01038 0,03110 0,05244 0,04991
CPA_I Accommodation and food services 0,01633 0,04136 0,04507 0,03247
CPA_J58 Publishing services 0,00738 0,00619 0,05152 0,00339
CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services0,01280 0,00298 0,03103 0,00200
CPA_J61 Telecommunications services 0,00564 0,00421 0,04885 0,00073
CPA_J62_J63 Computer programming, consultancy and related services; Information services 0,01658 0,00650 0,08654 0,00824
CPA_K64 Financial services, except insurance and pension funding 0,00263 0,00537 0,05962 0,00576
CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security 0,00213 0,00319 0,03578 0,00058
CPA_K66 Services auxiliary to financial services and insurance services 0,00717 0,00502 0,07742 0,00513
CPA_L68B Real estate services 0,01072 0,00442 0,16294 0,00974
CPA_L68A Of which: imputed rents of owner-occupied dwellings 0,00000 0,00000 0,05855 0,00000
CPA_M69_M70 Legal and accounting services; services of head offices; management consultancy services0,02913 0,00640 0,06586 0,00780
CPA_M71 Architectural and engineering services; technical testing and analysis services 0,01735 0,01048 0,07208 0,03839
CPA_M72 Scientific research and development services 0,01779 0,02055 0,05118 0,02671
CPA_M73 Advertising and market research services 0,01410 0,01019 0,06453 0,01539
CPA_M74_M75 Other professional, scientific and technical services and veterinary services 0,14946 0,01179 0,13855 0,00592
CPA_N77 Rental and leasing services 0,02811 0,06549 0,45167 0,04743
CPA_N78 Employment services 0,03147 0,01791 0,07583 0,01132
CPA_N79 Travel agency, tour operator and other reservation services and related services 0,01953 0,00570 0,04408 0,00990
CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services0,01667 0,01573 0,13855 0,03358
CPA_O84 Public administration and defence services; compulsory social security services 0,01544 0,01713 0,08116 0,02125
CPA_P85 Education services 0,03743 0,03218 0,06726 0,00102
CPA_Q86 Human health services 0,01050 0,01567 0,05040 0,01391
CPA_Q87_Q88 Residential care services; social work services without accommodation 0,01386 0,03973 0,05519 0,02393
CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services0,02945 0,03566 0,04583 0,00805
CPA_R93 Sporting services and amusement and recreation services 0,03891 0,03741 0,03788 0,04040
CPA_S94 Services furnished by membership organisations 0,03909 0,06134 0,05125 0,02067
CPA_S95 Repair services of computers and personal and household goods 0,01592 0,01514 0,10033 0,01279
CPA_S96 Other personal services 0,05061 0,01656 0,09073 0,03662
CPA_T Services of households as employers; undifferentiated goods and services produced by households for own use 0,00000 0,00000 0,07789 0,00000
Results for the year 2010direct CO2 emission coefficients (kg/EUR)
Analysis and quantification of a new fiscally neutral European tax
31
Table 10: Direct CO2 emission coefficients for 8 countries (Part 2)
Source: IWI (2016), Computations based on Eurostat, Input-Output-Tables 2010
BELGIUM GERMANY SLOVENIA GREECE
CPA_A01 Products of agriculture, hunting and related services 0,14500 0,10668 0,09514 0,39080
CPA_A02 Products of forestry, logging and related services 0,10442 0,01312 0,04240 0,78418
CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing 0,11208 0,07229 0,00126 0,18803
CPA_B Mining and quarrying 0,00443 0,08206 0,16010 0,00512
CPA_C10-C12 Food, beverages and tobacco products 0,04621 0,04792 0,04091 0,04887
CPA_C13-C15 Textiles, wearing apparel, leather and related products 0,02980 0,01543 0,01889 0,00517
CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials0,03979 0,04451 0,01536 0,01392
CPA_C17 Paper and paper products 0,03767 0,13348 0,29603 0,05681
CPA_C18 Printing and recording services 0,09014 0,04278 0,01885 0,02328
CPA_C19 Coke and refined petroleum products 0,11059 0,20392 0,00002 0,19598
CPA_C20 Chemicals and chemical products 0,13561 0,16613 0,06536 0,13752
CPA_C21 Basic pharmaceutical products and pharmaceutical preparations 0,06486 0,01763 0,02928 0,00818
CPA_C22 Rubber and plastic products 0,02565 0,03368 0,04732 0,01813
CPA_C23 Other non-metallic mineral products 0,47679 0,64247 0,61404 1,15348
CPA_C24 Basic metals 0,21679 0,29773 0,11485 0,09029
CPA_C25 Fabricated metal products, except machinery and equipment 0,03938 0,04592 0,02769 0,01850
CPA_C26 Computer, electronic and optical products 0,00606 0,00508 0,00195 0,00022
CPA_C27 Electrical equipment 0,01722 0,02197 0,01214 0,00274
CPA_C28 Machinery and equipment n.e.c. 0,01696 0,01653 0,01437 0,00750
CPA_C29 Motor vehicles, trailers and semi-trailers 0,00225 0,01285 0,01107 0,00057
CPA_C30 Other transport equipment 0,02355 0,00934 0,00509 0,00216
CPA_C31_C32 Furniture and other manufactured goods 0,02088 0,01734 0,00692 0,00506
CPA_C33 Repair and installation services of machinery and equipment 0,06755 0,01660 0,02230 0,04702
CPA_D35 Electricity, gas, steam and air conditioning 0,94471 1,85433 2,33524 5,03365
CPA_E36 Natural water; water treatment and supply services 0,02131 0,70093 0,03157 0,00856
CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services0,11255 0,35586 0,01448 0,00523
CPA_F Constructions and construction works 0,08386 0,15416 0,03751 0,04050
CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles 0,03600 0,03789 0,00000 0,00500
CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles 0,05179 0,06175 0,03523 0,02774
CPA_G47 Retail trade services, except of motor vehicles and motorcycles 0,03239 0,06361 0,02563 0,01709
CPA_H49 Land transport services and transport services via pipelines 0,12317 0,15779 1,21832 0,96448
CPA_H50 Water transport services 0,09741 0,92166 0,00614 0,14545
CPA_H51 Air transport services 0,60893 0,92331 0,01226 0,22308
CPA_H52 Warehousing and support services for transportation 0,09935 0,09957 0,16730 0,01821
CPA_H53 Postal and courier services 0,04332 0,08326 0,01809 0,01510
CPA_I Accommodation and food services 0,02050 0,05133 0,05234 0,06076
CPA_J58 Publishing services 0,03161 0,02519 0,00614 0,00710
CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services0,01758 0,01826 0,00250 0,00183
CPA_J61 Telecommunications services 0,03808 0,01455 0,00892 0,00831
CPA_J62_J63 Computer programming, consultancy and related services; Information services 0,04036 0,03590 0,01555 0,00336
CPA_K64 Financial services, except insurance and pension funding 0,00646 0,00733 0,00398 0,00039
CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security 0,00777 0,00608 0,00301 0,00599
CPA_K66 Services auxiliary to financial services and insurance services 0,01474 0,01180 0,00889 0,00516
CPA_L68B Real estate services 0,01759 0,01463 0,12776 0,00953
CPA_L68A Of which: imputed rents of owner-occupied dwellings 0,00000 0,00000 0,00000 0,00000
CPA_M69_M70 Legal and accounting services; services of head offices; management consultancy services0,03260 0,05565 0,47577 0,00774
CPA_M71 Architectural and engineering services; technical testing and analysis services 0,04332 0,08638 0,04522 0,01258
CPA_M72 Scientific research and development services 0,06273 0,03543 0,03469 0,00441
CPA_M73 Advertising and market research services 0,00629 0,02901 0,00451 0,00956
CPA_M74_M75 Other professional, scientific and technical services and veterinary services 0,02733 0,01904 0,09084 0,00656
CPA_N77 Rental and leasing services 0,07576 0,04848 0,21947 0,07396
CPA_N78 Employment services 0,02322 0,00551 0,00530 0,00177
CPA_N79 Travel agency, tour operator and other reservation services and related services 0,00409 0,00535 0,01414 0,02162
CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services0,04752 0,06653 0,04426 0,16572
CPA_O84 Public administration and defence services; compulsory social security services 0,03267 0,01501 0,00371 0,02743
CPA_P85 Education services 0,02251 0,03644 0,03856 0,00744
CPA_Q86 Human health services 0,03200 0,04194 0,03736 0,00667
CPA_Q87_Q88 Residential care services; social work services without accommodation 0,04229 0,00235 0,05305 0,01543
CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services0,04445 0,02682 0,02233 0,00448
CPA_R93 Sporting services and amusement and recreation services 0,04429 0,15046 0,07927 0,06159
CPA_S94 Services furnished by membership organisations 0,01453 0,03358 0,02413 0,00297
CPA_S95 Repair services of computers and personal and household goods 0,08228 0,09159 0,02168 0,00412
CPA_S96 Other personal services 0,07710 0,05433 0,17729 0,00066
CPA_T Services of households as employers; undifferentiated goods and services produced by households for own use 0,00000 0,00000 0,00000 0,00000
Results for the year 2010direct CO2 emission coefficients (kg/EUR)
Analysis and quantification of a new fiscally neutral European tax
32
Using this data for the estimation of total emission coefficients, the cost-push effects for the particular
countries are presented in Table 11 and Table 12. Similar to the results for EU-27 the highest effect –
in accordance with the level of emission coefficients – is generated for electricity, gas, steam and air
conditioning, again with big difference between the countries. The price effect differs from 2,73 %
(France) to 25,18 % (Greece), with significant price change for Hungary, Germany and Slovenia
(about 10 %). The aim of this comparison is to get information about the order of magnitude of these
changes. For the explanation of these differences and more precise results more disaggregated input-
output tables taking into account different technologies for producing electricity will be needed.
Price effects of the labour cost reducing are given in Table 13 and Table 14. The results reveal similar
effects as has been observed for the EU-27 with decreasing prices for labour intensive products like
education services, residential care services; social work services without accommodation, postal and
courier services and other services. The comparison between the countries shows, that these effects
are higher in the countries with lower labour productivity, like Hungary and Greece.
The results for the overall price effect contained in Table 15 and Table 16 show small-sized decrease
in prices for the labour intensive services and increasing prices of CO2 intensive products like
electricity, gas, steam and air conditioning, basic metals, other non-metal mineral products and air
transport services. Summarising we can observe, that the overall price effect is determined primarily
by the CO2 emission intensity and the overall effect for the CO2 emission intensive products remain
significant. These are the products with higher labour productivity and lower compensation of
employees compared to the above mentioned product and services with higher labour intensity and
lower CO2 emission content.
Analysis and quantification of a new fiscally neutral European tax
33
Table 11: Cost-push effects for 8 countries (Part 1)
Source: IWI (2016), Computations based on Eurostat, Input-Output-Tables 2010
AUSTRIA FRANCE HUNGARY ITALY
CPA_A01 Products of agriculture, hunting and related services 1,35% 1,14% 2,07% 1,21%
CPA_A02 Products of forestry, logging and related services 0,37% 0,89% 1,98% 0,64%
CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing 0,70% 2,08% 2,05% 1,52%
CPA_B Mining and quarrying 1,15% 0,63% 2,53% 1,26%
CPA_C10-C12 Food, beverages and tobacco products 1,05% 0,95% 1,94% 1,22%
CPA_C13-C15 Textiles, wearing apparel, leather and related products 0,71% 0,58% 1,31% 0,89%
CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials0,89% 0,65% 2,08% 1,10%
CPA_C17 Paper and paper products 2,27% 1,20% 2,22% 2,13%
CPA_C18 Printing and recording services 0,78% 0,63% 1,76% 1,03%
CPA_C19 Coke and refined petroleum products 2,05% 1,88% 2,43% 3,28%
CPA_C20 Chemicals and chemical products 2,02% 1,74% 3,71% 1,95%
CPA_C21 Basic pharmaceutical products and pharmaceutical preparations 0,61% 0,64% 1,39% 1,00%
CPA_C22 Rubber and plastic products 0,98% 0,89% 2,07% 1,40%
CPA_C23 Other non-metallic mineral products 3,79% 4,12% 5,68% 4,85%
CPA_C24 Basic metals 3,95% 2,58% 3,49% 2,59%
CPA_C25 Fabricated metal products, except machinery and equipment 1,44% 0,81% 1,73% 1,09%
CPA_C26 Computer, electronic and optical products 0,62% 0,52% 1,54% 0,66%
CPA_C27 Electrical equipment 0,88% 0,74% 1,90% 1,11%
CPA_C28 Machinery and equipment n.e.c. 0,82% 0,64% 1,34% 0,97%
CPA_C29 Motor vehicles, trailers and semi-trailers 0,77% 0,75% 1,46% 1,04%
CPA_C30 Other transport equipment 0,71% 0,48% 1,68% 0,87%
CPA_C31_C32 Furniture and other manufactured goods 1,44% 0,45% 1,47% 0,98%
CPA_C33 Repair and installation services of machinery and equipment 0,54% 0,53% 1,41% 1,04%
CPA_D35 Electricity, gas, steam and air conditioning 4,47% 2,73% 10,91% 6,50%
CPA_E36 Natural water; water treatment and supply services 1,39% 0,45% 2,05% 2,97%
CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services0,55% 1,70% 1,61% 1,95%
CPA_F Constructions and construction works 1,02% 0,67% 1,81% 1,00%
CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles 0,44% 0,55% 2,06% 0,70%
CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles 0,39% 0,33% 1,37% 0,74%
CPA_G47 Retail trade services, except of motor vehicles and motorcycles 0,30% 0,36% 1,45% 0,78%
CPA_H49 Land transport services and transport services via pipelines 1,30% 1,42% 2,11% 1,59%
CPA_H50 Water transport services 0,52% 1,45% 1,71% 8,08%
CPA_H51 Air transport services 3,39% 3,39% 1,90% 3,25%
CPA_H52 Warehousing and support services for transportation 0,45% 0,23% 1,46% 1,19%
CPA_H53 Postal and courier services 0,25% 0,25% 0,69% 0,87%
CPA_I Accommodation and food services 0,40% 0,50% 1,55% 0,79%
CPA_J58 Publishing services 0,44% 0,35% 1,14% 0,60%
CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services0,30% 0,52% 0,66% 0,37%
CPA_J61 Telecommunications services 0,29% 0,27% 0,87% 0,43%
CPA_J62_J63 Computer programming, consultancy and related services; Information services 0,24% 0,17% 0,97% 0,37%
CPA_K64 Financial services, except insurance and pension funding 0,15% 0,14% 0,72% 0,17%
CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security 0,20% 0,20% 0,72% 0,23%
CPA_K66 Services auxiliary to financial services and insurance services 0,20% 0,21% 0,69% 0,22%
CPA_L68B Real estate services 0,29% 0,12% 1,59% 0,22%
CPA_L68A Of which: imputed rents of owner-occupied dwellings 0,17% 0,02% 0,54% 0,01%
CPA_M69_M70 Legal and accounting services; services of head offices; management consultancy services 0,33% 0,20% 0,92% 0,33%
CPA_M71 Architectural and engineering services; technical testing and analysis services 0,28% 0,23% 1,03% 0,77%
CPA_M72 Scientific research and development services 0,41% 0,39% 1,04% 0,70%
CPA_M73 Advertising and market research services 0,36% 0,29% 1,05% 0,63%
CPA_M74_M75 Other professional, scientific and technical services and veterinary services 1,00% 0,28% 1,42% 0,42%
CPA_N77 Rental and leasing services 0,22% 0,46% 2,37% 0,88%
CPA_N78 Employment services 0,17% 0,14% 0,63% 0,37%
CPA_N79 Travel agency, tour operator and other reservation services and related services 0,88% 0,30% 1,53% 1,24%
CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services0,25% 0,29% 1,36% 0,63%
CPA_O84 Public administration and defence services; compulsory social security services 0,27% 0,26% 0,87% 0,41%
CPA_P85 Education services 0,31% 0,27% 0,82% 0,19%
CPA_Q86 Human health services 0,29% 0,21% 0,98% 0,44%
CPA_Q87_Q88 Residential care services; social work services without accommodation 0,43% 0,26% 1,10% 0,40%
CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services0,36% 0,41% 0,96% 0,45%
CPA_R93 Sporting services and amusement and recreation services 0,57% 0,50% 1,77% 0,64%
CPA_S94 Services furnished by membership organisations 0,45% 0,48% 0,98% 0,56%
CPA_S95 Repair services of computers and personal and household goods 0,28% 0,33% 1,26% 0,59%
CPA_S96 Other personal services 0,42% 0,15% 0,97% 0,92%
CPA_T Services of households as employers; undifferentiated goods and services produced by households for own use 0,00% 0,00% 0,32% 0,00%
Results for the year 2010Cost push effects
Analysis and quantification of a new fiscally neutral European tax
34
Table 12: Cost-push effects for 8 countries (Part 2)
Source: IWI (2016), Computations based on Eurostat, Input-Output-Tables 2010
BELGIUM GERMANY SLOVENIA GREECE
CPA_A01 Products of agriculture, hunting and related services 1,37% 1,30% 1,09% 2,67%
CPA_A02 Products of forestry, logging and related services 1,13% 0,40% 0,49% 4,25%
CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing 1,21% 1,06% 0,84% 1,15%
CPA_B Mining and quarrying 0,87% 1,34% 2,32% 1,16%
CPA_C10-C12 Food, beverages and tobacco products 1,18% 1,23% 1,64% 1,47%
CPA_C13-C15 Textiles, wearing apparel, leather and related products 1,15% 1,10% 1,42% 1,12%
CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials1,11% 1,34% 1,50% 1,29%
CPA_C17 Paper and paper products 1,29% 2,47% 4,19% 2,08%
CPA_C18 Printing and recording services 1,21% 1,30% 1,60% 1,31%
CPA_C19 Coke and refined petroleum products 1,49% 2,18% 0,49% 1,87%
CPA_C20 Chemicals and chemical products 2,01% 2,08% 2,19% 1,92%
CPA_C21 Basic pharmaceutical products and pharmaceutical preparations 0,88% 0,75% 0,92% 0,64%
CPA_C22 Rubber and plastic products 1,09% 1,28% 1,82% 2,13%
CPA_C23 Other non-metallic mineral products 3,13% 4,21% 4,88% 6,86%
CPA_C24 Basic metals 2,55% 3,71% 3,64% 3,52%
CPA_C25 Fabricated metal products, except machinery and equipment 1,22% 1,36% 1,61% 1,92%
CPA_C26 Computer, electronic and optical products 0,86% 0,71% 0,65% 0,57%
CPA_C27 Electrical equipment 1,01% 0,82% 1,74% 1,47%
CPA_C28 Machinery and equipment n.e.c. 0,83% 0,87% 2,08% 1,27%
CPA_C29 Motor vehicles, trailers and semi-trailers 0,80% 1,05% 2,03% 0,97%
CPA_C30 Other transport equipment 0,85% 0,85% 1,90% 0,57%
CPA_C31_C32 Furniture and other manufactured goods 0,85% 0,78% 1,24% 1,32%
CPA_C33 Repair and installation services of machinery and equipment 0,89% 0,83% 1,08% 1,17%
CPA_D35 Electricity, gas, steam and air conditioning 4,83% 10,27% 11,53% 25,18%
CPA_E36 Natural water; water treatment and supply services 0,87% 3,49% 1,60% 4,73%
CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services1,32% 1,97% 1,76% 1,73%
CPA_F Constructions and construction works 1,27% 1,43% 1,60% 1,66%
CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles 0,59% 0,69% 0,84% 0,64%
CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles 0,59% 0,85% 1,09% 0,90%
CPA_G47 Retail trade services, except of motor vehicles and motorcycles 0,54% 0,78% 0,96% 0,67%
CPA_H49 Land transport services and transport services via pipelines 1,08% 1,28% 6,48% 4,91%
CPA_H50 Water transport services 1,23% 5,15% 0,41% 1,34%
CPA_H51 Air transport services 3,75% 4,81% 1,42% 1,91%
CPA_H52 Warehousing and support services for transportation 0,92% 1,14% 2,43% 1,32%
CPA_H53 Postal and courier services 0,54% 0,83% 0,59% 1,10%
CPA_I Accommodation and food services 0,64% 0,83% 1,33% 0,83%
CPA_J58 Publishing services 0,59% 0,56% 1,19% 0,43%
CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services0,39% 0,47% 0,67% 0,94%
CPA_J61 Telecommunications services 0,44% 0,47% 0,62% 0,43%
CPA_J62_J63 Computer programming, consultancy and related services; Information services 0,47% 0,38% 0,49% 0,36%
CPA_K64 Financial services, except insurance and pension funding 0,22% 0,28% 0,36% 0,30%
CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security 0,24% 0,37% 0,34% 0,30%
CPA_K66 Services auxiliary to financial services and insurance services 0,33% 0,34% 0,49% 0,16%
CPA_L68B Real estate services 0,57% 0,23% 0,91% 0,14%
CPA_L68A Of which: imputed rents of owner-occupied dwellings 0,06% 0,00% 0,08% 0,00%
CPA_M69_M70 Legal and accounting services; services of head offices; management consultancy services 0,38% 0,48% 2,76% 0,41%
CPA_M71 Architectural and engineering services; technical testing and analysis services 0,55% 0,64% 1,09% 0,76%
CPA_M72 Scientific research and development services 0,68% 0,54% 0,73% 1,06%
CPA_M73 Advertising and market research services 0,39% 0,40% 0,89% 1,04%
CPA_M74_M75 Other professional, scientific and technical services and veterinary services 0,60% 0,44% 0,70% 0,75%
CPA_N77 Rental and leasing services 0,62% 0,33% 1,39% 1,11%
CPA_N78 Employment services 0,17% 0,14% 0,14% 0,11%
CPA_N79 Travel agency, tour operator and other reservation services and related services 1,95% 0,35% 1,36% 0,83%
CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services0,56% 0,61% 0,75% 1,25%
CPA_O84 Public administration and defence services; compulsory social security services 0,31% 0,39% 0,52% 0,54%
CPA_P85 Education services 0,16% 0,37% 0,53% 0,14%
CPA_Q86 Human health services 0,42% 0,47% 0,61% 0,44%
CPA_Q87_Q88 Residential care services; social work services without accommodation 0,42% 0,32% 0,76% 1,18%
CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services0,51% 0,38% 0,53% 0,10%
CPA_R93 Sporting services and amusement and recreation services 0,63% 1,02% 1,39% 1,47%
CPA_S94 Services furnished by membership organisations 0,40% 0,36% 0,86% 1,30%
CPA_S95 Repair services of computers and personal and household goods 0,71% 0,73% 0,73% 0,26%
CPA_S96 Other personal services 0,82% 0,51% 1,46% 0,34%
CPA_T Services of households as employers; undifferentiated goods and services produced by households for own use 0,00% 0,00% 0,00% 0,00%
Results for the year 2010Cost push effects
Analysis and quantification of a new fiscally neutral European tax
35
Table 13: Price effects of reducing the labour costs for 8 countries (Part 1)
Source: IWI (2016), Computations based on Eurostat, Input-Output-Tables 2010
AUSTRIA FRANCE HUNGARY ITALY
CPA_A01 Products of agriculture, hunting and related services -0,25% -0,30% -0,91% -0,59%
CPA_A02 Products of forestry, logging and related services -0,23% -0,40% -1,49% -0,60%
CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing -0,32% -0,38% -1,40% -0,67%
CPA_B Mining and quarrying -0,27% -0,28% -0,73% -0,40%
CPA_C10-C12 Food, beverages and tobacco products -0,40% -0,42% -1,11% -0,70%
CPA_C13-C15 Textiles, wearing apparel, leather and related products -0,35% -0,36% -1,06% -0,77%
CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials-0,46% -0,46% -1,20% -0,73%
CPA_C17 Paper and paper products -0,43% -0,43% -1,06% -0,76%
CPA_C18 Printing and recording services -0,55% -0,55% -1,40% -0,83%
CPA_C19 Coke and refined petroleum products -0,31% -0,31% -0,74% -0,48%
CPA_C20 Chemicals and chemical products -0,39% -0,39% -0,89% -0,73%
CPA_C21 Basic pharmaceutical products and pharmaceutical preparations -0,31% -0,41% -0,81% -0,68%
CPA_C22 Rubber and plastic products -0,43% -0,44% -0,98% -0,81%
CPA_C23 Other non-metallic mineral products -0,50% -0,46% -1,04% -0,78%
CPA_C24 Basic metals -0,40% -0,43% -0,95% -0,73%
CPA_C25 Fabricated metal products, except machinery and equipment -0,50% -0,50% -1,07% -0,85%
CPA_C26 Computer, electronic and optical products -0,36% -0,44% -1,06% -0,63%
CPA_C27 Electrical equipment -0,46% -0,45% -1,01% -0,78%
CPA_C28 Machinery and equipment n.e.c. -0,47% -0,43% -0,82% -0,83%
CPA_C29 Motor vehicles, trailers and semi-trailers -0,42% -0,46% -0,93% -0,75%
CPA_C30 Other transport equipment -0,44% -0,48% -1,08% -0,84%
CPA_C31_C32 Furniture and other manufactured goods -0,44% -0,38% -1,10% -0,76%
CPA_C33 Repair and installation services of machinery and equipment -0,62% -0,55% -1,36% -0,87%
CPA_D35 Electricity, gas, steam and air conditioning -0,39% -0,37% -0,96% -0,57%
CPA_E36 Natural water; water treatment and supply services -0,40% -0,38% -1,59% -0,78%
CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services-0,34% -0,49% -1,23% -0,86%
CPA_F Constructions and construction works -0,58% -0,51% -1,30% -0,80%
CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles -0,62% -0,55% -1,64% -0,80%
CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles -0,51% -0,49% -1,34% -0,69%
CPA_G47 Retail trade services, except of motor vehicles and motorcycles -0,58% -0,51% -1,74% -0,74%
CPA_H49 Land transport services and transport services via pipelines -0,54% -0,53% -1,24% -0,78%
CPA_H50 Water transport services -0,43% -0,42% -1,09% -0,78%
CPA_H51 Air transport services -0,52% -0,49% -1,13% -0,68%
CPA_H52 Warehousing and support services for transportation -0,58% -0,43% -1,03% -0,82%
CPA_H53 Postal and courier services -0,76% -0,74% -1,86% -1,28%
CPA_I Accommodation and food services -0,39% -0,51% -1,50% -0,75%
CPA_J58 Publishing services -0,51% -0,50% -1,45% -0,80%
CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services-0,56% -0,46% -0,76% -0,58%
CPA_J61 Telecommunications services -0,40% -0,36% -1,03% -0,57%
CPA_J62_J63 Computer programming, consultancy and related services; Information services -0,64% -0,59% -1,43% -0,86%
CPA_K64 Financial services, except insurance and pension funding -0,64% -0,45% -1,42% -0,80%
CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security -0,60% -0,53% -1,29% -0,79%
CPA_K66 Services auxiliary to financial services and insurance services -0,62% -0,49% -0,88% -0,81%
CPA_L68B Real estate services -0,27% -0,24% -1,09% -0,20%
CPA_L68A Of which: imputed rents of owner-occupied dwellings -0,11% -0,03% -0,30% -0,05%
CPA_M69_M70 Legal and accounting services; services of head offices; management consultancy services-0,59% -0,54% -1,45% -0,51%
CPA_M71 Architectural and engineering services; technical testing and analysis services -0,58% -0,55% -1,47% -0,65%
CPA_M72 Scientific research and development services -0,75% -0,57% -1,42% -0,98%
CPA_M73 Advertising and market research services -0,54% -0,53% -1,39% -0,74%
CPA_M74_M75 Other professional, scientific and technical services and veterinary services -0,45% -0,47% -0,98% -0,55%
CPA_N77 Rental and leasing services -0,16% -0,30% -0,61% -0,67%
CPA_N78 Employment services -0,98% -0,82% -2,48% -1,75%
CPA_N79 Travel agency, tour operator and other reservation services and related services -0,54% -0,54% -1,49% -0,78%
CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services-0,63% -0,55% -1,34% -0,96%
CPA_O84 Public administration and defence services; compulsory social security services -0,78% -0,62% -1,77% -1,17%
CPA_P85 Education services -0,92% -0,71% -2,06% -1,50%
CPA_Q86 Human health services -0,69% -0,48% -1,75% -1,05%
CPA_Q87_Q88 Residential care services; social work services without accommodation -0,84% -0,73% -2,18% -1,25%
CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services-0,62% -0,55% -1,55% -0,66%
CPA_R93 Sporting services and amusement and recreation services -0,50% -0,52% -1,44% -0,67%
CPA_S94 Services furnished by membership organisations -0,74% -0,66% -1,55% -1,31%
CPA_S95 Repair services of computers and personal and household goods -0,51% -0,57% -1,36% -0,60%
CPA_S96 Other personal services -0,43% -0,37% -1,27% -0,65%
CPA_T Services of households as employers; undifferentiated goods and services produced by households for own use -1,13% -0,87% -3,03% -1,89%
Results for the year 2010price effects of reducing the labour costs
Analysis and quantification of a new fiscally neutral European tax
36
Table 14: Price effects of reducing the labour costs for 8 countries (Part 2)
Source: IWI (2016), Computations based on Eurostat, Input-Output-Tables 2010
BELGIUM GERMANY SLOVENIA GREECE
CPA_A01 Products of agriculture, hunting and related services -0,35% -0,52% -0,45% -0,93%
CPA_A02 Products of forestry, logging and related services -0,40% -0,52% -0,39% -1,44%
CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing -0,42% -0,36% -0,81% -0,74%
CPA_B Mining and quarrying -0,31% -0,42% -0,88% -0,80%
CPA_C10-C12 Food, beverages and tobacco products -0,48% -0,69% -0,94% -1,19%
CPA_C13-C15 Textiles, wearing apparel, leather and related products -0,46% -0,55% -1,05% -1,10%
CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials-0,50% -0,71% -1,01% -1,65%
CPA_C17 Paper and paper products -0,47% -0,64% -1,01% -1,41%
CPA_C18 Printing and recording services -0,61% -0,78% -1,25% -1,78%
CPA_C19 Coke and refined petroleum products -0,33% -0,47% -0,45% -0,90%
CPA_C20 Chemicals and chemical products -0,42% -0,58% -0,81% -1,12%
CPA_C21 Basic pharmaceutical products and pharmaceutical preparations -0,42% -0,49% -0,89% -0,81%
CPA_C22 Rubber and plastic products -0,45% -0,66% -0,99% -1,44%
CPA_C23 Other non-metallic mineral products -0,54% -0,68% -1,06% -1,39%
CPA_C24 Basic metals -0,50% -0,63% -0,99% -1,42%
CPA_C25 Fabricated metal products, except machinery and equipment -0,57% -0,79% -1,12% -1,41%
CPA_C26 Computer, electronic and optical products -0,41% -0,61% -0,67% -0,61%
CPA_C27 Electrical equipment -0,47% -0,64% -1,03% -1,13%
CPA_C28 Machinery and equipment n.e.c. -0,46% -0,74% -0,99% -1,15%
CPA_C29 Motor vehicles, trailers and semi-trailers -0,50% -0,75% -0,91% -0,88%
CPA_C30 Other transport equipment -0,49% -0,64% -0,99% -0,49%
CPA_C31_C32 Furniture and other manufactured goods -0,38% -0,67% -1,02% -1,40%
CPA_C33 Repair and installation services of machinery and equipment -0,73% -0,75% -1,26% -1,97%
CPA_D35 Electricity, gas, steam and air conditioning -0,35% -0,50% -0,85% -0,97%
CPA_E36 Natural water; water treatment and supply services -0,68% -0,64% -1,32% -2,20%
CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services-0,42% -0,58% -1,04% -1,59%
CPA_F Constructions and construction works -0,55% -0,81% -1,18% -1,51%
CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles -0,63% -0,94% -1,23% -1,23%
CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles -0,61% -0,81% -1,35% -1,81%
CPA_G47 Retail trade services, except of motor vehicles and motorcycles -0,61% -0,93% -1,15% -2,02%
CPA_H49 Land transport services and transport services via pipelines -0,63% -0,79% -1,08% -1,53%
CPA_H50 Water transport services -0,44% -0,52% -0,43% -0,79%
CPA_H51 Air transport services -0,49% -0,70% -0,93% -1,29%
CPA_H52 Warehousing and support services for transportation -0,52% -0,75% -0,83% -0,98%
CPA_H53 Postal and courier services -0,75% -1,18% -1,60% -2,65%
CPA_I Accommodation and food services -0,55% -0,75% -1,18% -0,94%
CPA_J58 Publishing services -0,50% -0,68% -1,44% -1,30%
CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services-0,51% -0,64% -1,31% -1,74%
CPA_J61 Telecommunications services -0,44% -0,58% -0,81% -0,96%
CPA_J62_J63 Computer programming, consultancy and related services; Information services -0,68% -0,97% -1,27% -1,41%
CPA_K64 Financial services, except insurance and pension funding -0,51% -0,73% -1,00% -2,09%
CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security -0,52% -0,84% -1,10% -1,14%
CPA_K66 Services auxiliary to financial services and insurance services -0,51% -0,92% -1,35% -1,21%
CPA_L68B Real estate services -0,26% -0,19% -0,39% -0,26%
CPA_L68A Of which: imputed rents of owner-occupied dwellings -0,06% 0,00% -0,08% 0,00%
CPA_M69_M70 Legal and accounting services; services of head offices; management consultancy services-0,34% -0,69% -1,17% -1,04%
CPA_M71 Architectural and engineering services; technical testing and analysis services -0,59% -0,70% -1,50% -1,32%
CPA_M72 Scientific research and development services -0,64% -0,79% -1,50% -2,37%
CPA_M73 Advertising and market research services -0,48% -0,55% -1,36% -1,51%
CPA_M74_M75 Other professional, scientific and technical services and veterinary services -0,45% -0,48% -0,87% -1,35%
CPA_N77 Rental and leasing services -0,42% -0,18% -0,67% -0,99%
CPA_N78 Employment services -1,18% -1,11% -2,02% -1,44%
CPA_N79 Travel agency, tour operator and other reservation services and related services -0,57% -0,60% -1,19% -1,60%
CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services-0,72% -0,91% -1,53% -2,18%
CPA_O84 Public administration and defence services; compulsory social security services -1,00% -1,03% -1,44% -2,82%
CPA_P85 Education services -1,12% -1,25% -1,81% -3,09%
CPA_Q86 Human health services -0,65% -0,80% -1,48% -1,62%
CPA_Q87_Q88 Residential care services; social work services without accommodation -1,05% -1,18% -1,71% -3,03%
CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services-0,61% -0,60% -1,28% -0,56%
CPA_R93 Sporting services and amusement and recreation services -0,60% -0,65% -1,21% -2,43%
CPA_S94 Services furnished by membership organisations -0,80% -1,25% -1,47% -2,09%
CPA_S95 Repair services of computers and personal and household goods -0,58% -1,15% -0,96% -0,61%
CPA_S96 Other personal services -0,56% -0,40% -0,86% -2,49%
CPA_T Services of households as employers; undifferentiated goods and services produced by households for own use -1,26% -1,54% -2,16% -3,12%
Results for the year 2010price effects of reducing the labour costs
Analysis and quantification of a new fiscally neutral European tax
37
Table 15: Overall price effects for 8 countries (Part 1)
Source: IWI (2016), Computations based on Eurostat, Input-Output-Tables 2010
AUSTRIA FRANCE HUNGARY ITALY
CPA_A01 Products of agriculture, hunting and related services 1,10% 0,84% 1,16% 0,62%
CPA_A02 Products of forestry, logging and related services 0,14% 0,49% 0,49% 0,04%
CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing 0,38% 1,70% 0,65% 0,84%
CPA_B Mining and quarrying 0,88% 0,36% 1,80% 0,86%
CPA_C10-C12 Food, beverages and tobacco products 0,64% 0,52% 0,83% 0,52%
CPA_C13-C15 Textiles, wearing apparel, leather and related products 0,36% 0,22% 0,25% 0,12%
CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials0,43% 0,19% 0,89% 0,37%
CPA_C17 Paper and paper products 1,84% 0,77% 1,16% 1,36%
CPA_C18 Printing and recording services 0,23% 0,09% 0,36% 0,21%
CPA_C19 Coke and refined petroleum products 1,74% 1,57% 1,69% 2,81%
CPA_C20 Chemicals and chemical products 1,63% 1,35% 2,81% 1,22%
CPA_C21 Basic pharmaceutical products and pharmaceutical preparations 0,31% 0,22% 0,58% 0,31%
CPA_C22 Rubber and plastic products 0,56% 0,44% 1,08% 0,59%
CPA_C23 Other non-metallic mineral products 3,29% 3,66% 4,64% 4,07%
CPA_C24 Basic metals 3,56% 2,15% 2,54% 1,85%
CPA_C25 Fabricated metal products, except machinery and equipment 0,94% 0,30% 0,67% 0,24%
CPA_C26 Computer, electronic and optical products 0,26% 0,08% 0,48% 0,03%
CPA_C27 Electrical equipment 0,42% 0,29% 0,89% 0,33%
CPA_C28 Machinery and equipment n.e.c. 0,35% 0,22% 0,52% 0,13%
CPA_C29 Motor vehicles, trailers and semi-trailers 0,35% 0,29% 0,52% 0,29%
CPA_C30 Other transport equipment 0,27% 0,00% 0,60% 0,04%
CPA_C31_C32 Furniture and other manufactured goods 1,00% 0,07% 0,37% 0,21%
CPA_C33 Repair and installation services of machinery and equipment -0,08% -0,03% 0,06% 0,17%
CPA_D35 Electricity, gas, steam and air conditioning 4,09% 2,36% 9,95% 5,93%
CPA_E36 Natural water; water treatment and supply services 0,98% 0,06% 0,46% 2,19%
CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services0,20% 1,21% 0,38% 1,09%
CPA_F Constructions and construction works 0,44% 0,16% 0,51% 0,21%
CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles -0,18% -0,01% 0,42% -0,11%
CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles -0,13% -0,15% 0,03% 0,05%
CPA_G47 Retail trade services, except of motor vehicles and motorcycles -0,27% -0,15% -0,30% 0,04%
CPA_H49 Land transport services and transport services via pipelines 0,75% 0,89% 0,88% 0,81%
CPA_H50 Water transport services 0,09% 1,03% 0,62% 7,30%
CPA_H51 Air transport services 2,87% 2,90% 0,77% 2,58%
CPA_H52 Warehousing and support services for transportation -0,13% -0,20% 0,42% 0,37%
CPA_H53 Postal and courier services -0,51% -0,49% -1,17% -0,41%
CPA_I Accommodation and food services 0,01% -0,01% 0,05% 0,04%
CPA_J58 Publishing services -0,06% -0,15% -0,30% -0,20%
CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services-0,26% 0,06% -0,10% -0,21%
CPA_J61 Telecommunications services -0,11% -0,09% -0,16% -0,14%
CPA_J62_J63 Computer programming, consultancy and related services; Information services -0,40% -0,41% -0,46% -0,49%
CPA_K64 Financial services, except insurance and pension funding -0,48% -0,32% -0,70% -0,63%
CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security -0,40% -0,33% -0,58% -0,56%
CPA_K66 Services auxiliary to financial services and insurance services -0,42% -0,28% -0,18% -0,59%
CPA_L68B Real estate services 0,03% -0,12% 0,50% 0,02%
CPA_L68A Of which: imputed rents of owner-occupied dwellings 0,06% -0,01% 0,25% -0,04%
CPA_M69_M70 Legal and accounting services; services of head offices; management consultancy services-0,25% -0,35% -0,53% -0,18%
CPA_M71 Architectural and engineering services; technical testing and analysis services -0,29% -0,32% -0,45% 0,12%
CPA_M72 Scientific research and development services -0,35% -0,18% -0,38% -0,28%
CPA_M73 Advertising and market research services -0,18% -0,23% -0,34% -0,11%
CPA_M74_M75 Other professional, scientific and technical services and veterinary services 0,55% -0,19% 0,44% -0,13%
CPA_N77 Rental and leasing services 0,06% 0,16% 1,76% 0,21%
CPA_N78 Employment services -0,81% -0,68% -1,85% -1,38%
CPA_N79 Travel agency, tour operator and other reservation services and related services 0,34% -0,23% 0,04% 0,46%
CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services-0,37% -0,26% 0,02% -0,32%
CPA_O84 Public administration and defence services; compulsory social security services -0,51% -0,35% -0,90% -0,76%
CPA_P85 Education services -0,62% -0,44% -1,24% -1,31%
CPA_Q86 Human health services -0,40% -0,28% -0,77% -0,61%
CPA_Q87_Q88 Residential care services; social work services without accommodation -0,41% -0,48% -1,08% -0,85%
CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services-0,26% -0,15% -0,59% -0,21%
CPA_R93 Sporting services and amusement and recreation services 0,07% -0,03% 0,33% -0,03%
CPA_S94 Services furnished by membership organisations -0,29% -0,18% -0,57% -0,75%
CPA_S95 Repair services of computers and personal and household goods -0,22% -0,24% -0,10% -0,01%
CPA_S96 Other personal services -0,01% -0,22% -0,30% 0,27%
CPA_T Services of households as employers; undifferentiated goods and services produced by households for own use -1,13% -0,87% -2,71% -1,89%
Results for the year 2010overall price effects
Analysis and quantification of a new fiscally neutral European tax
38
Table 16: Overall price effects for 5 countries (Part 2)
Source: IWI (2016), Computations based on Eurostat, Input-Output-Tables 2010
BELGIUM GERMANY SLOVENIA GREECE
CPA_A01 Products of agriculture, hunting and related services 1,03% 0,79% 0,65% 1,74%
CPA_A02 Products of forestry, logging and related services 0,73% -0,12% 0,10% 2,81%
CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing 0,79% 0,70% 0,03% 0,40%
CPA_B Mining and quarrying 0,57% 0,93% 1,44% 0,36%
CPA_C10-C12 Food, beverages and tobacco products 0,70% 0,54% 0,70% 0,27%
CPA_C13-C15 Textiles, wearing apparel, leather and related products 0,68% 0,56% 0,37% 0,03%
CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials0,61% 0,62% 0,49% -0,36%
CPA_C17 Paper and paper products 0,81% 1,83% 3,19% 0,67%
CPA_C18 Printing and recording services 0,59% 0,51% 0,34% -0,46%
CPA_C19 Coke and refined petroleum products 1,17% 1,71% 0,04% 0,97%
CPA_C20 Chemicals and chemical products 1,59% 1,50% 1,38% 0,81%
CPA_C21 Basic pharmaceutical products and pharmaceutical preparations 0,45% 0,26% 0,03% -0,17%
CPA_C22 Rubber and plastic products 0,64% 0,62% 0,83% 0,69%
CPA_C23 Other non-metallic mineral products 2,59% 3,53% 3,82% 5,47%
CPA_C24 Basic metals 2,05% 3,09% 2,65% 2,10%
CPA_C25 Fabricated metal products, except machinery and equipment 0,65% 0,57% 0,49% 0,50%
CPA_C26 Computer, electronic and optical products 0,44% 0,10% -0,02% -0,04%
CPA_C27 Electrical equipment 0,54% 0,18% 0,71% 0,34%
CPA_C28 Machinery and equipment n.e.c. 0,37% 0,14% 1,09% 0,12%
CPA_C29 Motor vehicles, trailers and semi-trailers 0,30% 0,30% 1,12% 0,09%
CPA_C30 Other transport equipment 0,36% 0,21% 0,91% 0,08%
CPA_C31_C32 Furniture and other manufactured goods 0,47% 0,11% 0,22% -0,08%
CPA_C33 Repair and installation services of machinery and equipment 0,17% 0,07% -0,18% -0,80%
CPA_D35 Electricity, gas, steam and air conditioning 4,48% 9,77% 10,68% 24,21%
CPA_E36 Natural water; water treatment and supply services 0,19% 2,85% 0,28% 2,53%
CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services0,90% 1,39% 0,72% 0,14%
CPA_F Constructions and construction works 0,72% 0,63% 0,42% 0,14%
CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles -0,04% -0,24% -0,40% -0,59%
CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles -0,02% 0,04% -0,26% -0,90%
CPA_G47 Retail trade services, except of motor vehicles and motorcycles -0,07% -0,15% -0,18% -1,35%
CPA_H49 Land transport services and transport services via pipelines 0,45% 0,49% 5,40% 3,39%
CPA_H50 Water transport services 0,79% 4,63% -0,02% 0,55%
CPA_H51 Air transport services 3,26% 4,10% 0,48% 0,63%
CPA_H52 Warehousing and support services for transportation 0,40% 0,39% 1,61% 0,34%
CPA_H53 Postal and courier services -0,21% -0,35% -1,00% -1,56%
CPA_I Accommodation and food services 0,09% 0,08% 0,16% -0,11%
CPA_J58 Publishing services 0,09% -0,12% -0,25% -0,87%
CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services-0,12% -0,16% -0,65% -0,80%
CPA_J61 Telecommunications services 0,01% -0,11% -0,19% -0,53%
CPA_J62_J63 Computer programming, consultancy and related services; Information services -0,21% -0,58% -0,78% -1,05%
CPA_K64 Financial services, except insurance and pension funding -0,28% -0,45% -0,64% -1,79%
CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security -0,28% -0,48% -0,76% -0,84%
CPA_K66 Services auxiliary to financial services and insurance services -0,18% -0,58% -0,85% -1,05%
CPA_L68B Real estate services 0,31% 0,03% 0,52% -0,12%
CPA_L68A Of which: imputed rents of owner-occupied dwellings -0,01% 0,00% 0,01% 0,00%
CPA_M69_M70 Legal and accounting services; services of head offices; management consultancy services 0,04% -0,21% 1,59% -0,63%
CPA_M71 Architectural and engineering services; technical testing and analysis services -0,04% -0,06% -0,41% -0,55%
CPA_M72 Scientific research and development services 0,04% -0,24% -0,77% -1,31%
CPA_M73 Advertising and market research services -0,09% -0,15% -0,47% -0,48%
CPA_M74_M75 Other professional, scientific and technical services and veterinary services 0,15% -0,04% -0,17% -0,60%
CPA_N77 Rental and leasing services 0,20% 0,15% 0,72% 0,12%
CPA_N78 Employment services -1,02% -0,97% -1,88% -1,33%
CPA_N79 Travel agency, tour operator and other reservation services and related services 1,38% -0,25% 0,17% -0,77%
CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services-0,15% -0,30% -0,78% -0,93%
CPA_O84 Public administration and defence services; compulsory social security services -0,70% -0,65% -0,92% -2,28%
CPA_P85 Education services -0,96% -0,88% -1,28% -2,95%
CPA_Q86 Human health services -0,24% -0,34% -0,87% -1,18%
CPA_Q87_Q88 Residential care services; social work services without accommodation -0,63% -0,86% -0,95% -1,85%
CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services-0,10% -0,21% -0,76% -0,46%
CPA_R93 Sporting services and amusement and recreation services 0,03% 0,37% 0,18% -0,96%
CPA_S94 Services furnished by membership organisations -0,40% -0,89% -0,61% -0,79%
CPA_S95 Repair services of computers and personal and household goods 0,13% -0,42% -0,23% -0,35%
CPA_S96 Other personal services 0,26% 0,12% 0,60% -2,15%
CPA_T Services of households as employers; undifferentiated goods and services produced by households for own use -1,26% -1,54% -2,16% -3,12%
Results for the year 2010overall price effects
Analysis and quantification of a new fiscally neutral European tax
39
The present study contributes to the discussion on the new European tax or fee, which would
be based on taxing end consumption (taxing the products and not the production) according to
how much CO2 is emitted during the production of particular commodities, irrespective of
whether all or a part of this process takes place inside or outside the EU.
The input-output model provides an appropriate and unique approach for measuring the total
CO2 content of the various commodities taking the entire production chain into account. The
calculation by products can be the basis for the estimation of product specific CO2 taxes. Such
a tax could become a new direct European tax.
A tax rate of 40,69 euros per tonne of CO2 emissions could have generated fiscal revenue in
the amount of 1 % of EU GDP in the year 2011.
A reduction of the labour costs by -2,03 % could compensate the introduction of a CO2 tax by
the amount of 40,69 euros per tonne of CO2.
The reduction of labour costs leads to decreasing prices of labour intensive commodities and
services and in this way mitigates the price effects generated by introducing the new CO2 tax.
Although such a change in the tax system would be neutral on the overall European level, the
prices of the various products will be affected in quite different ways.
The introducing of the new CO2 tax and the simultaneous reduction of labour costs would
lead to significant changes in commodity prices between +9,80 % (electricity, gas, steam and
air conditioning) and -1,25 % (education services) as results of this compensation
mechanism.
All the results are based on calculations for “Europe as a whole”. The results for different
Member States might differ significantly from the “European average”.
The introduction of a uniform tax rate in Europe will affect the Member States in a different
manner.
Compensation in the form of reducing the labour cost stimulates the demand for labour and
increases employment. Positive effects for the environment as well as for the employment can
be expected (“double dividend”).
The key-factor for the intensity of the cost-push effect is the emission content of particular
products. The way to mitigate the negative effect of introducing the CO2 tax for the product
prices is to promote technological innovations leading to decreasing emission intensity.
The study can be done using the same methodological approach for energy tax under the
condition that data for energy coefficients in the similar classification and quality as for the
CO2 emissions are available.
The current study can be seen as a “feasibility study” which illustrates the high potential of
input-output analysis to address such policy questions. The results provide orders of
magnitude primary but show that more detailed analyses could contribute significantly to
evidence based policy making.
5 Conclusions and recommendations, and proposals for action
Analysis and quantification of a new fiscally neutral European tax
40
The study offers insight into some of the implications of moving towards a new European tax
aiming at reducing negative environmental effects and lowering labour costs at the same time.
The focus was on the very relevant “first round effects” of such a change. The effects induced
by a reaction of producers and consumers to the changes in relative prices are not covered and
require the development of more complex models, dealing with the economic effect of
introducing a CO2 emission tax.
The subject of the current study and the presented results offer topics for further analyses and
scientific studies.
The study had to be carried out on the basis of not fully adequate statistical material. The
following annex therefore contains a few proposals for future research.
The analyses should be carried out on the basis of a data set, specifically designed for the
questions under considerations. Important aspects of such a data set are inter alia:
o A more up-to-date reference year
o More disaggregated input-output tables taking into account different technologies for
producing particular products with emphasis on product groups like electricity and
specific products – with respect to environmental impact – like sugar, cement and
others.
o Symmetric tables derived on the basis of the product technology assumption.
So far the calculations were carried out at the EU-27 level and a few Member countries. The
entire analyses should be made available for all Member States to study the different
implications of EU uniform, product specific tax rates on the prices in the different Member
States.
Analysis and quantification of a new fiscally neutral European tax
41
[1] Conrad, K. – Schmidt, T. F. N. (1998): Economic Effects of an Uncoordinated Versus a
Coordinated Carbon Dioxide Policy in the European Union: An Applied General Equilibrium
Analysis; Economic Systems Research, Vol.10, No.2
[2] European Commission (2005): Communication from the Commission, Building the ERA of
Knowledge for Growth, Brussels, April 2005
[3] European Economic and Social Committee (2015): Preliminary Draft Opinion of the Section
for Economic and Monetary Union and Economic and Social Cohesion on “A European tax
as an EU own resource”; ECO/377; Brussels
[4] Heerenden, R. (1974): “Affluence and Energy Demand,” Mechanical Engineering, 96, 18-22
[5] Miller, R.E. – Blair, P. D. (2009): Input-Output Analysis, Foundations and Extensions; New
York
[6] Páleník, V. – Miklošovič, T. (2015): Environmental tax as the Possible Part of EU Own
Resources, Working Paper of the Economic Institute of the Slovak Academy of Sciences, 72,
Bratislava
Eurostat (2016): Input-Output Tables for EU-27 and Member countries for the years 2011 and
2010, http://ec.europa.eu/eurostat/de/web/esa-supply-use-input-tables/data/workbooks
Eurostat (2016): Eurostat Database, Air emission accounts,
http://ec.europa.eu/eurostat/data/database
6 Complete bibliography and References
Analysis and quantification of a new fiscally neutral European tax
42
Table 17: Cumulative CO2 emission coefficients for 8 countries (Part 1)
Source: IWI (2016), Computations based on Eurostat, Input-Output-Tables 2010
AUSTRIA FRANCE HUNGARY ITALY
CPA_A01 Products of agriculture, hunting and related services 0,33144 0,28123 0,50991 0,29721
CPA_A02 Products of forestry, logging and related services 0,09184 0,21809 0,48762 0,15837
CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing 0,17180 0,51190 0,50308 0,37266
CPA_B Mining and quarrying 0,28252 0,15582 0,62169 0,30960
CPA_C10-C12 Food, beverages and tobacco products 0,25742 0,23303 0,47717 0,29966
CPA_C13-C15 Textiles, wearing apparel, leather and related products 0,17457 0,14256 0,32146 0,21780
CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials0,21835 0,16027 0,51159 0,27026
CPA_C17 Paper and paper products 0,55846 0,29597 0,54641 0,52236
CPA_C18 Printing and recording services 0,19147 0,15568 0,43253 0,25432
CPA_C19 Coke and refined petroleum products 0,50431 0,46147 0,59736 0,80687
CPA_C20 Chemicals and chemical products 0,49678 0,42674 0,91088 0,47955
CPA_C21 Basic pharmaceutical products and pharmaceutical preparations 0,15054 0,15709 0,34217 0,24491
CPA_C22 Rubber and plastic products 0,24183 0,21750 0,50800 0,34455
CPA_C23 Other non-metallic mineral products 0,93101 1,01355 1,39707 1,19160
CPA_C24 Basic metals 0,97118 0,63394 0,85720 0,63540
CPA_C25 Fabricated metal products, except machinery and equipment 0,35371 0,19837 0,42637 0,26730
CPA_C26 Computer, electronic and optical products 0,15136 0,12722 0,37914 0,16133
CPA_C27 Electrical equipment 0,21510 0,18223 0,46762 0,27357
CPA_C28 Machinery and equipment n.e.c. 0,20272 0,15744 0,32917 0,23719
CPA_C29 Motor vehicles, trailers and semi-trailers 0,19037 0,18488 0,35828 0,25621
CPA_C30 Other transport equipment 0,17513 0,11843 0,41335 0,21427
CPA_C31_C32 Furniture and other manufactured goods 0,35464 0,11127 0,36202 0,23966
CPA_C33 Repair and installation services of machinery and equipment 0,13357 0,12910 0,34716 0,25639
CPA_D35 Electricity, gas, steam and air conditioning 1,09890 0,67024 2,68138 1,59628
CPA_E36 Natural water; water treatment and supply services 0,34041 0,10942 0,50428 0,73093
CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services0,13406 0,41852 0,39646 0,48008
CPA_F Constructions and construction works 0,25010 0,16554 0,44465 0,24673
CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles 0,10866 0,13433 0,50520 0,17104
CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles 0,09520 0,08220 0,33548 0,18204
CPA_G47 Retail trade services, except of motor vehicles and motorcycles 0,07471 0,08960 0,35544 0,19188
CPA_H49 Land transport services and transport services via pipelines 0,31849 0,34958 0,51949 0,39005
CPA_H50 Water transport services 0,12679 0,35627 0,42048 1,98568
CPA_H51 Air transport services 0,83313 0,83320 0,46640 0,79970
CPA_H52 Warehousing and support services for transportation 0,11048 0,05613 0,35760 0,29367
CPA_H53 Postal and courier services 0,06230 0,06043 0,16973 0,21280
CPA_I Accommodation and food services 0,09817 0,12336 0,38135 0,19306
CPA_J58 Publishing services 0,10931 0,08699 0,28080 0,14813
CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services0,07356 0,12747 0,16197 0,09036
CPA_J61 Telecommunications services 0,07025 0,06573 0,21502 0,10551
CPA_J62_J63 Computer programming, consultancy and related services; Information services 0,05930 0,04271 0,23809 0,09078
CPA_K64 Financial services, except insurance and pension funding 0,03780 0,03351 0,17678 0,04255
CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security 0,04929 0,04975 0,17596 0,05552
CPA_K66 Services auxiliary to financial services and insurance services 0,04959 0,05136 0,17070 0,05499
CPA_L68B Real estate services 0,07221 0,02954 0,39093 0,05355
CPA_L68A Of which: imputed rents of owner-occupied dwellings 0,04060 0,00496 0,13311 0,00257
CPA_M69_M70 Legal and accounting services; services of head offices; management consultancy services0,08124 0,04793 0,22625 0,08082
CPA_M71 Architectural and engineering services; technical testing and analysis services 0,06975 0,05554 0,25227 0,18873
CPA_M72 Scientific research and development services 0,10000 0,09500 0,25464 0,17116
CPA_M73 Advertising and market research services 0,08918 0,07202 0,25884 0,15388
CPA_M74_M75 Other professional, scientific and technical services and veterinary services 0,24532 0,06869 0,34916 0,10291
CPA_N77 Rental and leasing services 0,05448 0,11257 0,58311 0,21574
CPA_N78 Employment services 0,04275 0,03553 0,15501 0,09111
CPA_N79 Travel agency, tour operator and other reservation services and related services 0,21683 0,07418 0,37719 0,30469
CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services0,06264 0,07033 0,33325 0,15558
CPA_O84 Public administration and defence services; compulsory social security services 0,06524 0,06459 0,21383 0,09965
CPA_P85 Education services 0,07555 0,06618 0,20220 0,04569
CPA_Q86 Human health services 0,07047 0,05088 0,24071 0,10701
CPA_Q87_Q88 Residential care services; social work services without accommodation 0,10625 0,06290 0,26922 0,09941
CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services0,08811 0,09996 0,23478 0,11049
CPA_R93 Sporting services and amusement and recreation services 0,13968 0,12196 0,43503 0,15723
CPA_S94 Services furnished by membership organisations 0,10941 0,11880 0,24099 0,13765
CPA_S95 Repair services of computers and personal and household goods 0,06949 0,08105 0,31056 0,14567
CPA_S96 Other personal services 0,10378 0,03782 0,23946 0,22714
CPA_T Services of households as employers; undifferentiated goods and services produced by households for own use 0,00000 0,00000 0,07789 0,00000
Results for the year 2010total CO2 emission coefficients (kg/EUR)
7 Annex
Analysis and quantification of a new fiscally neutral European tax
43
Table 18: Cumulative CO2 emission coefficients for 8 countries (Part 2)
Source: IWI (2016), Computations based on Eurostat, Input-Output-Tables 2010
BELGIUM GERMANY SLOVENIA GREECE
CPA_A01 Products of agriculture, hunting and related services 0,33787 0,31999 0,26900 0,65668
CPA_A02 Products of forestry, logging and related services 0,27790 0,09756 0,12084 1,04328
CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing 0,29752 0,26042 0,20678 0,28143
CPA_B Mining and quarrying 0,21413 0,33008 0,57028 0,28473
CPA_C10-C12 Food, beverages and tobacco products 0,28892 0,30231 0,40224 0,36072
CPA_C13-C15 Textiles, wearing apparel, leather and related products 0,28142 0,27129 0,34938 0,27610
CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials0,27190 0,32895 0,36939 0,31694
CPA_C17 Paper and paper products 0,31595 0,60657 1,03029 0,51166
CPA_C18 Printing and recording services 0,29704 0,31854 0,39227 0,32308
CPA_C19 Coke and refined petroleum products 0,36663 0,53528 0,11984 0,46004
CPA_C20 Chemicals and chemical products 0,49326 0,51080 0,53830 0,47307
CPA_C21 Basic pharmaceutical products and pharmaceutical preparations 0,21615 0,18434 0,22617 0,15759
CPA_C22 Rubber and plastic products 0,26875 0,31383 0,44612 0,52245
CPA_C23 Other non-metallic mineral products 0,76949 1,03409 1,19954 1,68504
CPA_C24 Basic metals 0,62749 0,91258 0,89417 0,86550
CPA_C25 Fabricated metal products, except machinery and equipment 0,29966 0,33491 0,39603 0,47076
CPA_C26 Computer, electronic and optical products 0,21054 0,17450 0,16017 0,13950
CPA_C27 Electrical equipment 0,24816 0,20126 0,42678 0,36144
CPA_C28 Machinery and equipment n.e.c. 0,20412 0,21424 0,51086 0,31116
CPA_C29 Motor vehicles, trailers and semi-trailers 0,19693 0,25920 0,49957 0,23874
CPA_C30 Other transport equipment 0,20816 0,20921 0,46738 0,13922
CPA_C31_C32 Furniture and other manufactured goods 0,20971 0,19069 0,30512 0,32340
CPA_C33 Repair and installation services of machinery and equipment 0,21971 0,20281 0,26551 0,28657
CPA_D35 Electricity, gas, steam and air conditioning 1,18740 2,52302 2,83271 6,18814
CPA_E36 Natural water; water treatment and supply services 0,21468 0,85879 0,39367 1,16308
CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services0,32402 0,48319 0,43272 0,42447
CPA_F Constructions and construction works 0,31207 0,35170 0,39336 0,40734
CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles 0,14577 0,17013 0,20540 0,15685
CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles 0,14547 0,21006 0,26743 0,22215
CPA_G47 Retail trade services, except of motor vehicles and motorcycles 0,13271 0,19056 0,23695 0,16534
CPA_H49 Land transport services and transport services via pipelines 0,26563 0,31413 1,59277 1,20763
CPA_H50 Water transport services 0,30260 1,26463 0,10114 0,33010
CPA_H51 Air transport services 0,92169 1,18186 0,34798 0,47034
CPA_H52 Warehousing and support services for transportation 0,22547 0,27937 0,59819 0,32445
CPA_H53 Postal and courier services 0,13305 0,20437 0,14568 0,26925
CPA_I Accommodation and food services 0,15619 0,20456 0,32707 0,20367
CPA_J58 Publishing services 0,14469 0,13786 0,29265 0,10498
CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services0,09494 0,11666 0,16363 0,23060
CPA_J61 Telecommunications services 0,10933 0,11585 0,15241 0,10537
CPA_J62_J63 Computer programming, consultancy and related services; Information services 0,11499 0,09365 0,11951 0,08828
CPA_K64 Financial services, except insurance and pension funding 0,05503 0,06991 0,08859 0,07400
CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security 0,06007 0,09020 0,08304 0,07286
CPA_K66 Services auxiliary to financial services and insurance services 0,08011 0,08279 0,12160 0,04024
CPA_L68B Real estate services 0,14011 0,05581 0,22301 0,03439
CPA_L68A Of which: imputed rents of owner-occupied dwellings 0,01395 0,00000 0,02064 0,00000
CPA_M69_M70 Legal and accounting services; services of head offices; management consultancy services0,09217 0,11830 0,67761 0,10013
CPA_M71 Architectural and engineering services; technical testing and analysis services 0,13514 0,15637 0,26673 0,18735
CPA_M72 Scientific research and development services 0,16748 0,13278 0,18002 0,26105
CPA_M73 Advertising and market research services 0,09698 0,09851 0,21854 0,25455
CPA_M74_M75 Other professional, scientific and technical services and veterinary services 0,14796 0,10892 0,17195 0,18431
CPA_N77 Rental and leasing services 0,15336 0,08179 0,34069 0,27352
CPA_N78 Employment services 0,04065 0,03389 0,03530 0,02659
CPA_N79 Travel agency, tour operator and other reservation services and related services 0,47868 0,08634 0,33418 0,20304
CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services0,13874 0,14961 0,18434 0,30784
CPA_O84 Public administration and defence services; compulsory social security services 0,07514 0,09463 0,12894 0,13195
CPA_P85 Education services 0,04025 0,09082 0,13081 0,03429
CPA_Q86 Human health services 0,10221 0,11518 0,14950 0,10749
CPA_Q87_Q88 Residential care services; social work services without accommodation 0,10341 0,07827 0,18768 0,28978
CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services0,12593 0,09448 0,12927 0,02513
CPA_R93 Sporting services and amusement and recreation services 0,15484 0,24985 0,34182 0,36142
CPA_S94 Services furnished by membership organisations 0,09715 0,08810 0,21073 0,31862
CPA_S95 Repair services of computers and personal and household goods 0,17328 0,17918 0,17836 0,06390
CPA_S96 Other personal services 0,20175 0,12654 0,35928 0,08377
CPA_T Services of households as employers; undifferentiated goods and services produced by households for own use 0,00000 0,00000 0,00000 0,00000
Results for the year 2010total CO2 emission coefficients (kg/EUR)
Analysis and quantification of a new fiscally neutral European tax
44
Table 19: Total CO2 emissions for 8 countries in physical units (Part 1)
Source: IWI (2016), Computations based on Eurostat, Input-Output-Tables 2010
AUSTRIA FRANCE HUNGARY ITALY
CPA_A01 Products of agriculture, hunting and related services 1.163 9.724 1.267 6.611
CPA_A02 Products of forestry, logging and related services 87 547 92 9
CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing 0 1.244 8 574
CPA_B Mining and quarrying 924 1.067 426 3.481
CPA_C10-C12 Food, beverages and tobacco products 1.284 11.932 775 5.618
CPA_C13-C15 Textiles, wearing apparel, leather and related products 79 1.032 49 2.765
CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials322 508 93 750
CPA_C17 Paper and paper products 2.266 2.902 117 4.675
CPA_C18 Printing and recording services 27 368 74 566
CPA_C19 Coke and refined petroleum products 2.163 18.758 1.280 25.803
CPA_C20 Chemicals and chemical products 2.384 21.242 1.910 10.884
CPA_C21 Basic pharmaceutical products and pharmaceutical preparations 15 1.295 280 639
CPA_C22 Rubber and plastic products 160 1.692 237 1.709
CPA_C23 Other non-metallic mineral products 4.510 22.470 2.195 30.755
CPA_C24 Basic metals 10.670 20.815 1.196 16.764
CPA_C25 Fabricated metal products, except machinery and equipment 689 1.134 279 1.344
CPA_C26 Computer, electronic and optical products 115 250 181 226
CPA_C27 Electrical equipment 120 511 272 721
CPA_C28 Machinery and equipment n.e.c. 270 681 336 1.375
CPA_C29 Motor vehicles, trailers and semi-trailers 53 1.016 305 644
CPA_C30 Other transport equipment 15 365 34 277
CPA_C31_C32 Furniture and other manufactured goods 164 337 79 1.684
CPA_C33 Repair and installation services of machinery and equipment 224 426 116 1.960
CPA_D35 Electricity, gas, steam and air conditioning 10.367 35.713 15.295 108.252
CPA_E36 Natural water; water treatment and supply services 146 85 107 2.484
CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services328 9.834 195 7.051
CPA_F Constructions and construction works 2.863 7.376 781 6.103
CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles 141 2.892 559 1.110
CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles 1.013 3.925 1.050 4.256
CPA_G47 Retail trade services, except of motor vehicles and motorcycles 401 4.329 383 4.635
CPA_H49 Land transport services and transport services via pipelines 2.842 20.575 1.619 23.677
CPA_H50 Water transport services 13 3.241 3 14.917
CPA_H51 Air transport services 2.475 14.955 9 6.159
CPA_H52 Warehousing and support services for transportation 296 565 576 7.744
CPA_H53 Postal and courier services 27 417 44 363
CPA_I Accommodation and food services 362 3.587 182 3.649
CPA_J58 Publishing services 35 179 56 52
CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services35 82 70 42
CPA_J61 Telecommunications services 39 278 150 36
CPA_J62_J63 Computer programming, consultancy and related services; Information services 178 434 283 364
CPA_K64 Financial services, except insurance and pension funding 38 612 310 503
CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security 14 150 52 11
CPA_K66 Services auxiliary to financial services and insurance services 21 163 74 149
CPA_L68B Real estate services 232 587 770 843
CPA_L68A Of which: imputed rents of owner-occupied dwellings 0 0 361 0
CPA_M69_M70 Legal and accounting services; services of head offices; management consultancy services 567 788 270 554
CPA_M71 Architectural and engineering services; technical testing and analysis services 141 653 138 1.464
CPA_M72 Scientific research and development services 62 842 55 669
CPA_M73 Advertising and market research services 81 205 64 440
CPA_M74_M75 Other professional, scientific and technical services and veterinary services 325 130 184 144
CPA_N77 Rental and leasing services 216 4.419 880 1.649
CPA_N78 Employment services 134 556 47 82
CPA_N79 Travel agency, tour operator and other reservation services and related services 43 44 19 132
CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services109 1.302 474 1.502
CPA_O84 Public administration and defence services; compulsory social security services 338 3.002 841 2.804
CPA_P85 Education services 627 3.887 345 78
CPA_Q86 Human health services 198 2.153 230 1.531
CPA_Q87_Q88 Residential care services; social work services without accommodation 97 2.622 71 521
CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services102 878 65 168
CPA_R93 Sporting services and amusement and recreation services 67 749 26 406
CPA_S94 Services furnished by membership organisations 126 948 50 135
CPA_S95 Repair services of computers and personal and household goods 16 139 24 58
CPA_S96 Other personal services 149 290 109 638
CPA_T Services of households as employers; undifferentiated goods and services produced by households for own use 0 0 1 0
Total 52.967 253.900 38.419 325.211
Results for the year 2010Total CO2 emissions (in 1000 tonnes)
Analysis and quantification of a new fiscally neutral European tax
45
Table 20: Total CO2 emissions for 8 countries in physical units (Part 2)
Source: IWI (2016), Computations based on Eurostat, Input-Output-Tables 2010
BELGIUM GERMANY SLOVENIA GREECE
CPA_A01 Products of agriculture, hunting and related services 2.085 6.905 167 4.303
CPA_A02 Products of forestry, logging and related services 66 61 11 125
CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing 49 71 0 243
CPA_B Mining and quarrying 115 7.381 122 47
CPA_C10-C12 Food, beverages and tobacco products 2.160 9.467 136 1.083
CPA_C13-C15 Textiles, wearing apparel, leather and related products 387 1.002 38 33
CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials179 1.212 14 25
CPA_C17 Paper and paper products 281 6.761 363 126
CPA_C18 Printing and recording services 338 968 7 25
CPA_C19 Coke and refined petroleum products 4.007 18.147 0 3.632
CPA_C20 Chemicals and chemical products 7.935 30.353 209 820
CPA_C21 Basic pharmaceutical products and pharmaceutical preparations 1.007 1.249 62 44
CPA_C22 Rubber and plastic products 308 2.920 98 46
CPA_C23 Other non-metallic mineral products 4.418 29.736 689 3.957
CPA_C24 Basic metals 7.232 42.708 424 594
CPA_C25 Fabricated metal products, except machinery and equipment 577 6.010 85 111
CPA_C26 Computer, electronic and optical products 82 800 3 1
CPA_C27 Electrical equipment 176 2.770 41 7
CPA_C28 Machinery and equipment n.e.c. 378 4.152 41 26
CPA_C29 Motor vehicles, trailers and semi-trailers 86 4.297 56 1
CPA_C30 Other transport equipment 84 689 1 12
CPA_C31_C32 Furniture and other manufactured goods 301 1.244 10 18
CPA_C33 Repair and installation services of machinery and equipment 461 726 9 29
CPA_D35 Electricity, gas, steam and air conditioning 20.167 287.490 5.155 47.966
CPA_E36 Natural water; water treatment and supply services 28 4.165 6 7
CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services1.585 17.546 15 16
CPA_F Constructions and construction works 4.975 37.645 281 915
CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles 318 2.244 0 34
CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles 2.808 13.685 148 704
CPA_G47 Retail trade services, except of motor vehicles and motorcycles 710 9.969 61 225
CPA_H49 Land transport services and transport services via pipelines 2.519 12.692 3.479 6.679
CPA_H50 Water transport services 656 26.869 2 2.218
CPA_H51 Air transport services 4.242 26.310 4 556
CPA_H52 Warehousing and support services for transportation 2.849 10.366 156 157
CPA_H53 Postal and courier services 164 1.886 4 23
CPA_I Accommodation and food services 325 4.354 95 1.268
CPA_J58 Publishing services 198 1.145 3 34
CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services72 639 1 5
CPA_J61 Telecommunications services 539 872 13 71
CPA_J62_J63 Computer programming, consultancy and related services; Information services 684 2.918 18 8
CPA_K64 Financial services, except insurance and pension funding 115 1.118 7 4
CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security 73 455 3 15
CPA_K66 Services auxiliary to financial services and insurance services 242 385 2 8
CPA_L68B Real estate services 321 5.432 174 302
CPA_L68A Of which: imputed rents of owner-occupied dwellings 0 0 0 0
CPA_M69_M70 Legal and accounting services; services of head offices; management consultancy services 1.495 8.089 695 55
CPA_M71 Architectural and engineering services; technical testing and analysis services 426 5.957 40 63
CPA_M72 Scientific research and development services 456 1.024 16 4
CPA_M73 Advertising and market research services 63 809 4 30
CPA_M74_M75 Other professional, scientific and technical services and veterinary services 50 445 69 14
CPA_N77 Rental and leasing services 985 3.181 122 110
CPA_N78 Employment services 135 149 3 0
CPA_N79 Travel agency, tour operator and other reservation services and related services 15 124 7 37
CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services739 5.030 26 1.039
CPA_O84 Public administration and defence services; compulsory social security services 944 3.308 11 650
CPA_P85 Education services 538 4.878 87 88
CPA_Q86 Human health services 887 7.487 79 90
CPA_Q87_Q88 Residential care services; social work services without accommodation 501 153 24 16
CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services173 788 17 18
CPA_R93 Sporting services and amusement and recreation services 95 2.985 20 39
CPA_S94 Services furnished by membership organisations 71 1.166 8 12
CPA_S95 Repair services of computers and personal and household goods 79 242 2 4
CPA_S96 Other personal services 204 2.970 81 2
CPA_T Services of households as employers; undifferentiated goods and services produced by households for own use 0 0 0 0
Total 84.158 696.595 13.525 78.792
Results for the year 2010Total CO2 emissions (in 1000 tonnes)
Analysis and quantification of a new fiscally neutral European tax
46
Table 21: Total CO2 emissions generated through final use for 8 countries in physical units (Part 1)
Source: IWI (2016), Computations based on Eurostat, Input-Output-Tables 2010
AUSTRIA FRANCE HUNGARY ITALY
CPA_A01 Products of agriculture, hunting and related services 643 4.826 728 4.168
CPA_A02 Products of forestry, logging and related services 32 434 45 31
CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing 9 600 8 728
CPA_B Mining and quarrying -27 -15 132 36
CPA_C10-C12 Food, beverages and tobacco products 2.393 21.830 2.287 21.528
CPA_C13-C15 Textiles, wearing apparel, leather and related products 794 2.730 264 7.798
CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials238 142 36 526
CPA_C17 Paper and paper products 266 798 179 1.725
CPA_C18 Printing and recording services 2 -47 27 69
CPA_C19 Coke and refined petroleum products 1.325 10.339 1.472 14.046
CPA_C20 Chemicals and chemical products 513 4.098 517 3.858
CPA_C21 Basic pharmaceutical products and pharmaceutical preparations 295 3.370 546 2.520
CPA_C22 Rubber and plastic products 183 603 219 1.904
CPA_C23 Other non-metallic mineral products 545 2.294 -19 1.896
CPA_C24 Basic metals 505 380 308 537
CPA_C25 Fabricated metal products, except machinery and equipment 497 1.886 214 2.798
CPA_C26 Computer, electronic and optical products 581 2.239 719 3.256
CPA_C27 Electrical equipment 503 1.513 282 3.272
CPA_C28 Machinery and equipment n.e.c. 1.099 1.905 484 6.892
CPA_C29 Motor vehicles, trailers and semi-trailers 1.139 9.427 722 7.784
CPA_C30 Other transport equipment 161 557 60 1.307
CPA_C31_C32 Furniture and other manufactured goods 1.863 2.171 257 5.045
CPA_C33 Repair and installation services of machinery and equipment 251 2.628 92 6.059
CPA_D35 Electricity, gas, steam and air conditioning 4.145 19.488 5.452 38.379
CPA_E36 Natural water; water treatment and supply services 0 450 250 2.933
CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services11 3.302 184 3.708
CPA_F Constructions and construction works 6.133 31.809 3.347 35.891
CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles 484 3.400 479 5.971
CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles 834 7.632 723 8.552
CPA_G47 Retail trade services, except of motor vehicles and motorcycles 1.385 6.402 1.869 18.396
CPA_H49 Land transport services and transport services via pipelines 1.375 8.993 872 15.426
CPA_H50 Water transport services 5 184 5 5.533
CPA_H51 Air transport services 1.070 6.918 105 4.275
CPA_H52 Warehousing and support services for transportation 84 374 194 2.816
CPA_H53 Postal and courier services 17 101 24 176
CPA_I Accommodation and food services 1.639 9.018 1.225 17.070
CPA_J58 Publishing services 161 1.355 136 1.252
CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services70 1.184 63 647
CPA_J61 Telecommunications services 172 1.609 370 1.524
CPA_J62_J63 Computer programming, consultancy and related services; Information services 249 1.164 99 1.082
CPA_K64 Financial services, except insurance and pension funding 85 509 269 791
CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security 188 1.568 153 747
CPA_K66 Services auxiliary to financial services and insurance services 14 0 14 137
CPA_L68B Real estate services 528 2.000 401 1.628
CPA_L68A Of which: imputed rents of owner-occupied dwellings 731 766 821 323
CPA_M69_M70 Legal and accounting services; services of head offices; management consultancy services 35 825 48 495
CPA_M71 Architectural and engineering services; technical testing and analysis services 184 1.152 67 229
CPA_M72 Scientific research and development services 27 889 47 1.336
CPA_M73 Advertising and market research services 1 0 5 0
CPA_M74_M75 Other professional, scientific and technical services and veterinary services 79 215 35 381
CPA_N77 Rental and leasing services 67 529 101 249
CPA_N78 Employment services 0 10 1 62
CPA_N79 Travel agency, tour operator and other reservation services and related services 415 104 95 894
CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services89 200 58 541
CPA_O84 Public administration and defence services; compulsory social security services 1.369 11.318 1.971 13.104
CPA_P85 Education services 1.223 7.147 956 3.271
CPA_Q86 Human health services 1.281 6.689 1.004 11.316
CPA_Q87_Q88 Residential care services; social work services without accommodation 689 4.152 344 1.964
CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services253 2.218 299 1.639
CPA_R93 Sporting services and amusement and recreation services 233 1.918 238 959
CPA_S94 Services furnished by membership organisations 322 1.485 157 508
CPA_S95 Repair services of computers and personal and household goods 21 525 29 350
CPA_S96 Other personal services 266 439 268 3.702
CPA_T Services of households as employers; undifferentiated goods and services produced by households for own use 0 0 1 0
Total 39.741 222.750 32.354 306.039
Results for the year 2010
Total CO2 emissions generated through finale use incl. imports
(excl. exports)
(in 1000 tonnes)
Analysis and quantification of a new fiscally neutral European tax
47
Table 22: Total CO2 emissions generated through final use for 8 countries in physical units (Part 2)
Source: IWI (2016), Computations based on Eurostat, Input-Output-Tables 2010
BELGIUM GERMANY SLOVENIA GREECE
CPA_A01 Products of agriculture, hunting and related services 746 6.493 223 2.760
CPA_A02 Products of forestry, logging and related services 14 126 12 113
CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing 49 83 2 173
CPA_B Mining and quarrying 14 2.984 -23 -26
CPA_C10-C12 Food, beverages and tobacco products 4.047 32.404 704 5.862
CPA_C13-C15 Textiles, wearing apparel, leather and related products 1.106 8.056 221 1.174
CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials86 1.970 -8 21
CPA_C17 Paper and paper products 125 2.747 65 482
CPA_C18 Printing and recording services 16 339 -18 27
CPA_C19 Coke and refined petroleum products 1.455 13.345 112 3.538
CPA_C20 Chemicals and chemical products 455 6.925 295 937
CPA_C21 Basic pharmaceutical products and pharmaceutical preparations 402 2.545 -13 461
CPA_C22 Rubber and plastic products 117 1.989 98 185
CPA_C23 Other non-metallic mineral products 245 4.847 -8 440
CPA_C24 Basic metals 317 2.601 -73 -70
CPA_C25 Fabricated metal products, except machinery and equipment 935 4.719 33 749
CPA_C26 Computer, electronic and optical products 964 6.937 63 351
CPA_C27 Electrical equipment 569 4.071 253 341
CPA_C28 Machinery and equipment n.e.c. 1.175 10.595 329 834
CPA_C29 Motor vehicles, trailers and semi-trailers 1.927 19.039 740 478
CPA_C30 Other transport equipment 223 2.701 2 637
CPA_C31_C32 Furniture and other manufactured goods 739 7.116 113 740
CPA_C33 Repair and installation services of machinery and equipment 136 2.033 0 10
CPA_D35 Electricity, gas, steam and air conditioning 7.061 86.514 1.553 29.238
CPA_E36 Natural water; water treatment and supply services 145 1.876 51 459
CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services371 10.444 50 371
CPA_F Constructions and construction works 9.889 57.997 1.496 7.739
CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles 657 6.363 92 644
CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles 1.742 8.047 389 2.826
CPA_G47 Retail trade services, except of motor vehicles and motorcycles 2.907 25.133 446 1.087
CPA_H49 Land transport services and transport services via pipelines 975 7.091 383 5.894
CPA_H50 Water transport services 2 664 1 104
CPA_H51 Air transport services 514 16.180 18 598
CPA_H52 Warehousing and support services for transportation 1.003 1.356 137 118
CPA_H53 Postal and courier services 33 525 2 17
CPA_I Accommodation and food services 1.522 13.690 440 3.748
CPA_J58 Publishing services 329 2.466 28 320
CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services144 1.579 28 277
CPA_J61 Telecommunications services 408 3.195 84 469
CPA_J62_J63 Computer programming, consultancy and related services; Information services 438 2.009 43 67
CPA_K64 Financial services, except insurance and pension funding 224 2.923 37 206
CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security 303 3.415 43 84
CPA_K66 Services auxiliary to financial services and insurance services 150 53 5 2
CPA_L68B Real estate services 988 13.276 64 848
CPA_L68A Of which: imputed rents of owner-occupied dwellings 319 0 47 0
CPA_M69_M70 Legal and accounting services; services of head offices; management consultancy services 114 499 68 80
CPA_M71 Architectural and engineering services; technical testing and analysis services 143 2.865 7 109
CPA_M72 Scientific research and development services 262 337 37 100
CPA_M73 Advertising and market research services 1 0 0 0
CPA_M74_M75 Other professional, scientific and technical services and veterinary services 48 496 5 54
CPA_N77 Rental and leasing services 310 325 5 80
CPA_N78 Employment services 0 7 0 0
CPA_N79 Travel agency, tour operator and other reservation services and related services 1.245 342 115 196
CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services248 1.162 1 131
CPA_O84 Public administration and defence services; compulsory social security services 2.159 17.858 357 3.128
CPA_P85 Education services 906 10.825 277 395
CPA_Q86 Human health services 2.480 18.976 294 1.411
CPA_Q87_Q88 Residential care services; social work services without accommodation 1.223 5.083 84 293
CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services352 2.180 71 70
CPA_R93 Sporting services and amusement and recreation services 219 2.410 47 97
CPA_S94 Services furnished by membership organisations 215 2.308 34 1.159
CPA_S95 Repair services of computers and personal and household goods 77 180 8 40
CPA_S96 Other personal services 472 4.548 121 233
CPA_T Services of households as employers; undifferentiated goods and services produced by households for own use 0 0 0 0
Total 56.458 479.859 10.087 82.910
Results for the year 2010
Total CO2 emissions generated through finale use incl. imports
(excl. exports)
(in 1000 tonnes)
ENREG.NO. BE - BXL - 27
Rue Belliard/Belliardstraat 991040 Bruxelles/Brussel
BELGIQUE/BELGIË
Published by: “Visits and Publications” UnitEESC-2016-17-EN
www.eesc.europa.eu
© European Union, 2016Reproduction is authorised provided the source is acknowledged.
QE-01-16-118-EN-NISBN 978-92-830-3051-5
doi:10.2864/498050
European Economic and Social Committee