1887

OECD Economics Department Working Papers

Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

English, French

Improving Energy System Efficiency in the Czech Republic

A carbon intensive energy system in the Czech Republic contributes to one of the highest ratios of greenhouse gas (GHG) emissions to GDP in the OECD. While EU emission reduction commitments provide the most visible and binding motivation for changing the way in which the country produces and uses energy, action is also required to improve energy security and public health and to avoid an adverse impact of emission reduction on economic growth and living standards. Energy system transformation requires ensuring a comprehensive, consistent and stable policy framework with stronger ex ante and ex post evaluation. A single carbon price should be achieved through the Emission Trading System (ETS) and carbon taxation. Excise tax rates on all fossil energy sources and products should be realigned, based on their carbon content and other environmental externalities, notably by increasing the relative taxation of diesel. Sectoral policies that complement carbon pricing in promoting greener energy sources, energy efficiency and less fuel intensive transport need to be strengthened.

English

Keywords: carbon tax, infrastructure, Czech Republic, energy efficiency, emissions, carbon trading systems, transport
JEL: H23: Public Economics / Taxation, Subsidies, and Revenue / Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies; O44: Economic Development, Innovation, Technological Change, and Growth / Economic Growth and Aggregate Productivity / Environment and Growth; Q58: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Environmental Economics: Government Policy
This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error