RT Journal Article
T1 Taxation for a Circular Economy: New Instruments, Reforms, and Architectural Changes in the Fiscal System
A1 Vence Deza, Xavier
A1 López Pérez, Sugey de Jesús
K1 Fiscal system
K1 Fiscal expenditure
K1 Tax benefits
K1 Circular economy
K1 Circular activities
K1 Circular taxation
AB This article addresses fiscal policy as a key instrument for promoting the transition to acircular economy. It is based on the hypotheses that (1) the current tax system penalizes circularactivities, which are generally labour intensive, as opposed to new product manufacturing activities,which are generally intensive in materials and energy, highly automated and robotized, and (2) thatthe environmental taxation implemented in recent decades is unable to introduce significant changesto stop climate change or keep the economy within planetary ecological limits. This article examinesthe basis of an alternative tax system and tax instruments for correcting the current linear economybias and driving the transition to a circular economy. Proposals are developed for both structural andpartial reforms of the fiscal system, focusing on tax measures that can be implemented in the mediumor short term to boost a circular economy. More specifically, we suggest a complete redesign of thecurrently opaque and significant amount of tax expenditure to transform environmentally harmfultax benefits into environmentally friendly tax measures that are suitable for the circular economy
PB MDPI
YR 2021
FD 2021
LK http://hdl.handle.net/10347/32246
UL http://hdl.handle.net/10347/32246
LA eng
NO Vence, X., & López Pérez, S. D. J. (2021). Taxation for a circular economy: New instruments, reforms, and architectural changes in the fiscal system. Sustainability, 13(8), 4581.
NO he authors belong to the ICEDE-Galician Competitive Research Group GRC ED431C 2018/23 and to the “R2π: Transition from linear 2 circular: Policy and Innovation” H2020 Project. This research was supported by the Spanish Innovation Agency (AEI) through the project ECO-CIRCULAR: “La estrategia europea de transición a la economía circular: un análisis jurídico prospectivo y cambios en las cadenas globales de valor”—ECO2017-87142-C2-1-R. All these projects are co-funded by FEDER (UE).
DS Minerva
RD 24 abr 2026