Environmental Engineering Reference
In-Depth Information
D
ISCUSSION OF
T
WO
P
OLICY
I
NSTRUMENTS
Two policy instruments will be discussed in this section: the introduction of a tax on
incinerated waste and the green electricity certificate system. The aim here is to show how
policy instruments in one system affect the other, and the difficulties in handling the double
function of waste incineration as a supplier of heat and/or electricity and as a waste treatment
method.
Introduction of a Tax on Incinerated Waste in Sweden
A government investigation on a tax on incinerated waste was presented recently
(Ministry of Finance, 2005b), and a proposal of the tax was incorporated in the government
budget proposition (Ministry of Finance, 2005c). The proposal is that waste should be
incorporated in the existing energy taxation system by taxing the fossil content of the waste,
meaning e.g. plastic packaging. However, at the time of writing, the tax has been postponed
due to difficulties in measuring the fossil content in municipal waste. Table 3 shows the level
of the tax on incinerated waste and how it applies to different energy conversion units.
Table 3. Waste incineration tax as proposed (Ministry of Finance, 2005b)
Energy tax
(€/ton waste)
Carbon dioxide tax
(€/ton waste)
Total
(€/ton waste)
Fossil content 100%
Hot water boiler
16
355
371
Condensing power plant
0
0
0
CHP plant
14
51-62
51-62
Fossil content: 14% of total weight (assumed value for municipal waste)
Hot water boiler
2
45
47
Condensing power plant
0
0
0
CHP plant
0
6.5-8
6.5-8
The design of the tax is in accordance with how existing energy taxation is applied to the
DH sector; with a carbon dioxide tax and an energy tax, which is not applied to electricity
production, since electricity is taxed for the consumer (industrial consumers are exempt), heat
from hot water boilers is taxed in full, and heat from CHP plants is taxed at deducted levels as
is heat to industrial consumers. For a more detailed description of energy taxation, see e.g.
Holmgren (2006). It can also be noted that the DH networks are part of the emission
allowance trading systems, and the plants included will therefore probable be granted
additional deductions of carbon dioxide taxes. However, since waste incineration plants are
not included in the trading system, this is not included here.
The description of the assignment to carry out the governmental investigation of this tax
includes several goals that should be taken into consideration. How the tax steers according to
the waste hierarchy and to make material recovery including biological treatment more
