Circular taxation: A policy approach to reduce resource use and accelerate the transition to a circular economy
The study aims at raising awareness among practitioners and policymakers of the concept of 'circular taxation' and of its potential to provide the incentives needed to step away from the wasteful linear economy and contribute to the shift to a circular economy which operates within planetary boundaries.
- The report proposes a definition of circular taxation differentiating it from traditional approaches to environmental taxes.
- Four case studies of environmental taxes are considered to establish if they have elements that would be expected of circular taxation, and to seek to learn lessons for the application of circular taxation.
- Recommendations are presented on the implementation of circular taxation and on the possible uses of revenues with a focus on equity and just transition.