Determining the effectiveness of the Danish packaging tax policy: The case of paper and paperboard packaging imports

摘要

Paper and paperboard incorporate a large variety of use in today's global society. Packaging is among them. The fields where paper and paperboard are adopted in the form of packaging include food and beverage, tobacco, electric and electronic equipment, machinery, construction materials, furniture, etc. But once the packed product is consumed, what happens to the packaging? What happens to the tons and tons of paper and paperboard packaging? The answer is waste accumulation. An increasing problem of waste generation has become associated with paper and paperboard packaging. Recognizing the challenge, various nations, especially EU member states have adopted packaging policies contemplated to deal with the issue. Among the policies instituted, environmental taxation has received comparatively little attention both in terms of application and investigating literature. Applied in the form of weight basis charges, the tax policy aims at reducing the demand for the subjected products. The purpose of this paper is to analyze the effectiveness of the environmental taxes applied on paper and paperboard industrial packaging in the case of Denmark. Using a panel data analysis, the investigation focuses on the taxation impact on the import trade flow of paper and paperboard packaging entering into Danish territory. Gravitational regression model analysis is adopted to judge on the trade pattern. Results reveal that environmental taxes were effective in reducing the quantity imported of paper and paperboard. The reasons that might have stimulated the positive implementation are also emphasized as a remainder for future applications of the policy.