Environmental Fiscal Challenges for Cities and Transport
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Environmental Fiscal Challenges for Cities and Transport

Edited by Marta Villar Ezcurra, Janet E. Milne, Hope Ashiabor and Mikael Skou Andersen

As populations become increasingly concentrated in urban centres and mega cities, while demands on transportation continue to grow, the question of how to mitigate the environmental footprint of these trends is ever more pressing. This comprehensive book demonstrates the potentially significant role of environmental taxation and other market-based instruments in meeting these challenges.
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Chapter 13: Renewable energy, smart grids and hybrid vehicles: a Brazilian case study

Elena Aydos, Rafaela Cristina Oliari and Carlos Araújo Leonetti


This chapter analyses a Brazilian public programme called Inova Energia, aimed at incentivizing innovative projects in the renewable energy, electricity network and transport sectors. The chapter starts with a doctrinal analysis of the programme in light of the provisions of the World Trade Organization Agreement on Subsidies and Countervailing Measures. The chapter then explores the source of revenue for the programme and the controversies involving the use of innovation subsidies. The analysis reveals a number of inconsistencies and concerns, including: (1) the non-refundable payments made under the programme constituted subsidies; (2) the programme adopted a de facto local content condition; (3) there is a lack of evidence that the programme effectively fostered innovation; and (4) the programme lacked transparency.

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