Coase (1960)proposes property rights and is interested in keeping in mind that theexternality is only one of the consequences and the problem is that manyeconomists believe that the government is the solution to market failures. Coaseclaims that in less presence or absence of transaction costs and when theproperty rights of a good are established and do not provide an effectiveeconomic solution, these will be assigned to the subject that values them most.This proposal has great influence for the creation of environmental taxes,however, it has certain limitations, since the transaction costs betweenprivate arrangements, agreements, etc., are usually high (Mendezcarlo, et al.,2010).
1. DiscussionAroundthe 1980s, modern countries began to use environmental taxation as a tool to reduceunemployment and reduce the damage to the ozone layer (Rodríguez, 2008).Nations such as Finland, Sweden, Germany, the Netherlands, Norway, the UnitedKingdom and Italy have carried out environmental reforms in which a 2% increasein the tax burden has been obtained and GDP has increased by up to 9%,indicating that it is possible to obtain benefits for the economy and make itgreener (Slavickiene and Ciuleviciene, 2014).
Likewise, Barde (2002) based onexperiences of OECD countries states that 80% of the price of fuels are taxes,so this increase in the price for taxes has had an impact on the search formore environmentally friendly energy.It ishighlighted that the United States, Japan, France, South Korea, the UnitedKingdom, and China have been named the nations that most dynamically use taxesto support sustainable development as well as an ecological policy (KPGM,2013). The case of Brazil and the Tax on Circulation of Goods and Services usedsince 1990 as an economic instrument for environmental management (Jatobá,2005). Likewise, Chile in 2014 presented a tax reform to add environmentaltaxes through emissions from fixed sources and imported diesel vehicles (Katz,2014).Around1992 Mexico tries to implement environmental public policies to raise awarenessamong consumers and producers.
These policies have promoted fiscal incentivesfor companies that use more environmentally friendly technology and thus joinenvironmental policy strategies international (Mendezcarlo & Medina, 2009).Due to the fact that the General Law of Ecological Equilibrium andEnvironmental Protection explicitly contemplated economic instruments in 1996,it motivated an initiative for the Tax Law in 2003 to be published in theParliamentary Gazette. Environmental, however, despite the efforts made, a trueenvironmental fiscal policy was not created (Figueroa, 2005).Among thetaxes related to the environment in Mexico are the Special Tax on Productionand Services (STPS), Car Sales Tax (CST) and the Tax on fossil fuels (Arlinghaus& van Dender, 2017).
The STPS plays an important role because it taxesenergy products, in this case oil (for gasoline and diesel), is classified asthe difference between the sale price to the public (without VAT) and themarket price. Recently, Mexico experienced a lower sales price than the marketprice, a negative profit was obtained and consumers received a subsidy for anamount equivalent to the differential in pesos (SHCP, 2012).The SpecialTax on Production and Services is used to compensate the subsidy that thegovernment has provided in favor of consumers when the prices of the NorthAmerican coast are higher and when these fall, a positive collection isobtained because in Mexico the prices are inelastic and in the Internationalmarket, oil and gasoline prices are elastic. (Arlinghaus & van Dender,2017)Since2006, gasoline prices are set by the government at the beginning of each yearand the subsidy is given when the price is above fixed prices; it is known thatit has cost around 1.
2% of the GDP from 2007 to 2011, an amount capable ofreducing part of the country’s social problems (Sarabia & Hernandez, 2014).In addition to the STPS for the confirmation of the price, the final consumercontributes 16% of VAT (Tepach, 2015). On the other hand, in the recent energyreform in the fourteenth transitory article of the hydrocarbons law, it isestablished that from January 1, 2015, and until December 31, 2017, the FederalExecutive will be in charge of regulating the maximum prices to the public ofgasoline and diesel, and from January 1, 2018, prices in Mexico are determinedunder market conditions (Tepach, 2015). It isclear that it is necessary to make people aware of the collection of anenvironmental tax by ensuring that the collection has a clear destiny and infavor of environmental improvement.
Whereas the costs for air pollution in 2013represented 3.4% of the GDP at market prices with 538,669 MDP; the total costdue to depletion and total environmental degradation of 909 968 MDP, whichrepresents 5.7% of the GDP, the costs for air pollution represent almost 60% ofthe total costs (INEGI, 2014).
There areseveral authors who have talked about environmental taxes related to the use offossil fuels worldwide, testing the hypothesis that these help in a certain wayto reduce negative environmental externalities and show their progressivity.Barde(2002) states that the elimination of subsidies or taxes that affect theenvironment could bring a benefit by generating income that can be used toreduce the level of other taxes. Slavickiene and Ciuleviciene (2014) confirmthis by evaluating the environmental influence of the environmental reform onthe tax burden, finding that in many countries environmental taxes form a largepart of the income, and as a result of this, worker taxes have been reduced.Padillaand Roca (2003) also point out that carbon taxes can be slightly regressive butthe effect can be corrected if the revenues collected are properlyredistributed and it is reaffirmed that the energy tax could be justified bythe progressive effects that would occur when using income in an effective way.