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  4. 2021
  5. VOL 43, NO 5 (2021)
  6. pp. 55-72

THE IMPACT OF ENVIRONMENTAL TAX ADMINISTRATION ON THE COST OF THERMAL ENERGY ON THE EXAMPLE OF ORGANIC AND BIOFUELS BOILERS ІN UKRAINE

V.V. Stanytsina, V.O. Artemchuk, O.Yu. Bogoslavska

Èlektron. model. 2021, 43(5):55-72
https://doi.org/10.15407/emodel.43.05.055

ABSTRACT

The article provides an overview of approaches to greenhouse gas emissions taxation and taxThe article provides an overview of approaches to greenhouse gas emissions taxation and taxrates in European countries. To compare heated boilers with different characteristics, whichrun on different fuels the average cost of thermal energy for the life cycle LCOH was used.Environmental tax on environmental pollution (as a component of LCOH) is calculated for thethree most common types of boilers in Ukrainian boilers with a capacity of 4.65 to 58 MW,burning natural gas, coal, and fuel oil, as well as for low-power boilers (0.5 and 1 MW ), burningfossil fuels and biofuels. The eco-tax for biofuel boilers is calculated under current taxationand subject to the adoption of a European approach to taxation of carbon dioxide emissions. Itis established that at the current rates there are almost no economic incentives for the introductionof technologies to reduce the concentration of pollutants in emissions, but increasing therates of environmental tax may change this situation. However, provided that rates are evenlyincreased for all types of boilers, the eco-tax for natural gas boilers will remain the lowest,while for biofuel boilers it will increase significantly, which contradicts the stated goal of decarbonizingthe economy. It is shown that not only the change of environmental tax rates canbe an effective tool for achieving the goals of sustainable development, as the principles of itsadministration are also important.

KEYWORDS

environmental tax, greenhouse gases, thermal energy, biofuels, fossil fuels.

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