Taxation of Hazardous Chemicals as a Substitution Measure An interview study on companies affected by the Swedish
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Typ
Examensarbete för masterexamen
Program
Industrial ecology (MPTSE), MSc
Publicerad
2020
Författare
Andersson, Ida
Larsson, Sofia
Modellbyggare
Tidskriftstitel
ISSN
Volymtitel
Utgivare
Sammanfattning
Flame retardants have been widely applied in products due to their fire protective properties.
Commonly used flame retardants contain; bromine, chlorine or phosphorus, and several of
these have proven to cause hazardous health and environmental effects and have been
found in indoor environments. As one measure taken to reduce the occurrence of hazardous
flame retardants containing either bromine, chlorine or phosphorus, the Swedish Government
implemented an excise tax on chemicals in certain electronics in 2017. The tax targets
commonly used white goods and other electronics. Since the implementation, the tax has
been criticized for not reaching its purpose. The study has investigated what effects Swedish
companies perceive that the tax has generated. Based on 13 interviews, the authors have
found that substitution of hazardous flame retardants have occurred, but only to a small
extent. The main reason behind the substitution is the Swedish tax on chemicals in certain
electronics. The tax is further expressed as a driver for substitution of hazardous flame
retardants, together with EU directives. That only some substitution has been achieved might
be explained by several factors. Firstly, the tax rate might not accurately reflect the damage
costs caused by hazardous flame retardants, and therefore not create enough incentives to
substitute. Other reasons seem to derive from the identified challenges companies face in
relation to substitution; that the Swedish market is too small to be able to influence the global
production, substitution cost and that some companies do not have their own production.
Most companies have been able to do more tax deductions over time, although, the
application of the highest level of tax deductions is still limited. The underlying reason for why
not more deductions is made is lack of documentation. The tax has moreover added
administration for most companies, however to a varying extent. Over time, the administrative
cost has been constant, except from the initial phase. Main opinions about the tax is that the
environmental aim is good, but the question regarding hazardous flame retardants ought to
be addressed on a higher level than national to achieve substantial impact.
Beskrivning
Ämne/nyckelord
Tax on Chemicals , Chemical Substitution , Flame retardants , Electronic products