Department of physiology, University of Lucknow, India
Mini Review
A Novel and Effective Tax Design of Danish Pesticide Tax of Ex-Post Evaluation
Author(s): Golden Yadav*
Externality taxes are seen as a crucial instrument in the environmental and climate policy toolbox. However, due to poor design and inadequate tax rates, externality taxes don't always live up to their potential. These issues are addressed by the Danish pesticide tax, which was revised in 2013 and differentiates tax rates based on how dangerous a product is and dramatically raises prices for the most harmful pesticides. Using a panel data set containing pesticide use on 1900 mediumsized and large farms two years before and four years after the tax adjustment, this article assesses the redesigned tax. We discover that the fee was successful in encouraging consumers to switch from more harmful items to less harmful ones, which led to a 16 percent decrease in pesticide burden. Retaliation for the pesticide tax changes from farm to farm depending on the types of crops planted. The wor.. View More»