Cost-effectiveness of CO2-reduction measures in the Netherlands

The Dutch Ministry of Finance commissioned CE Delft to calculate the effects of a series of climate and environment policy packages to assess the anticipated CO2 cuts and costs to the national treasury. The following measures were examined:

  1. A national CO2 charge or input tax on coal and gas in the electricity sector.
  2. A national CO2 charge for both the electricity sector and industry with no recycling of tax revenues, or a variant with recycling for industry through a lowering of the energy charge or an increase in the current system for indirect emission costs (EU ETS).
  3. An increase in the third bracket of the energy charge on gas and electricity.
  4. A shift in the first bracket of the energy charge: less on electricity, more on gas.
  5. Abolition of special Vehicle Purchase Tax tariffs for commercial vans and taxis.
  6. Abolition of special Vehicle Circulation Tax tariffs for commercial vans.
  7. Abolition of the exemption from excise duty for inland shipping.
  8. Investment subsidies for greening of inland and/or maritime shipping.
  9. Introduction of a national aviation tax.

The measures examined were proposed by the project principal and are not necessarily the most cost-effective measures for addressing climate change.