Sweden incentives

In the European Union, ethanol is consumed in Spain, France, Sweden and Germany, especially after conversion into ETBE (ethyl tert-butyl ether), except in Sweden, but its use is increasing in all the other countries. New uses of bioethanol, e.g., in ethanol-direct fuel cells or as raw material for other chemicals, will further expand bioethanol use and production. Table 9.1 summarizes bioethanol production in different countries by 2004 [1], Owing to political decisions (EU directive setting at 5.75% the proportion of biofuels in fuels) and incentive taxation... 

In Sweden, three-way catalysts have been required on all cars since 1989, and tax incentives were offered to purchase such vehicles in the 1987 and 1988 model years. Figure 16.34 shows the CO and hydrocarbon exhaust emissions as a function of model year of gasoline-powered cars, measured using a remote-sensing technique (Sjodin, 1994). There is a large decrease in the emissions from 1987 to 1988 and 1989, supporting the effectiveness of these motor vehicle exhaust controls. 

Free allocations to new entrants may also distort competition between Member States by giving different investment incentives in different Member States. In the electricity sector, this could have a serious effect on security of supply in some Member States. As an example, a comparison of the first NAP versions showed that a new power plant would get more free allowances in Germany and Finland than in Denmark - and fewer in Sweden than in Denmark. This is a point of great concern in the Danish power sector. The Association of Danish Energy Companies has estimated that a new gas-fired combined cycle plant in Denmark receives only around 80% of the free allowances it would receive in Germany and Finland. A Danish coal-fired power plant receives only half of the allowances it would receive in Germany and Finland. For both types of plant, a Swedish power plant receives even fewer allowances. 

In Sweden, there has been a lot of attention on the allocation process rather than on the effects of the emission trading system itself. Some companies argue that if C02-efficient companies are not rewarded in the allocation there will be no incentives for abatement. I do not agree with them. It is true that allocation can be a very important revenue. For new entrants, the value of the allocation can be comparable to the annual cost for the investment (Ahman and Holmgren 2006). But the incentives for abatement are created from the cost for carbon emissions and not from the individual allocation. One can ask whether this is what companies really believe or whether they were just making noise in order to increase their allocation. 

Financial support in Sweden as well as in Denmark is only granted if all possibilities of re-integration into the labour market are exhausted. However, the job seeker has an entitlement on comprehensive help when searching a job. This quid pro quo doctrine is the core element of activation in both countries. In Denmark, the local job centre examines the unemployed person s readiness for work. If an unemployed person does not accept a reasonable work offer or if there are doubts on his or her readiness for work, the benefits may be suspended until the readiness for work is proven. Besides, in Sweden a positive incentive is set by means of a special benefit, the activity support, which is additional cash benefit that a job seeker receives only if he or she participates in activating measures. 

In Sweden, for example, fees paid on Ni-Cd battery purchases in Sweden far exceed the costs of a collection and recycling system. Indeed, they appear to have been imposed by the government as a punitive tax in an attempt to force Ni-Cd batteries out of the market in favor of batteries utilizing other chemistries. In this age of internet commerce and rapid mail order delivery, consumers that are given a significant monetary incentive to do so can just as easily buy their batteries outside such a program and avoid paying the punitive fee. 

Thanks to this system, the recycling rate in Sweden has exceeded 95% in 1996. Sweden has also proposed to modify EC Directive 157/91 producers/importers should be more involved, the public authority should supervise, and the incentive for battery replacement should be increased. Furthermore, Sweden has proposed to make a distinction between primary batteries and accumulators. It can be said that in Sweden, as well as in Italy, Directive 157/91 has been fiilly implemented. 

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