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Energy Policy and Energy Taxation in the EU

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This report offers a survey of EU energy taxation scheme and provides some insights on the possible outcomes of current EU policy in the energy domain. The authors are reviewing the existing legislation, namely the Council Directive 2003/96/EC and are analyzing the possible economic ground for harmonization of European energy taxes. They conclude that the virtues of energy taxation—including so-called double-dividend taxes—as a tool for energy policy are doubtful. A further development of energy taxation coupled with EU harmonization would most probably leads away from sound fiscal policy as well as from sound energy policy.

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