Title: Effectiveness of tax measures as incentives for digital and green investments in the economy (V5-2262)
Head od the research team: prof. dr. Maja Klun
Through various tax measures, in particular tax rates, allowances and exemptions, fiscal policy can influence the achievement of sustainable development goals, including goals such as economic growth, the use of renewable energy sources, less pollution, innovation and digitalization, less poverty, etc. Within the project, we will first distinguish between different types of measures, as e.g. a change in the tax rate does not have the same effect as a relief. Also, direct incentive measures do not have the same effect as relief. In addition to all measures, the implementation of the measure is even more important, i.e. the method of applying for relief or obtaining direct incentives.
The effects of measures, on the other hand, have different effects on different stakeholders (e.g. SMEs or large companies). It is therefore a question of complex questions on whom and through what measure we want to achieve the set goals. Environmental technologies can be a promoter of development, innovation and, consequently, productivity, competitiveness. A certain tax relief can be ‘interesting’ for a certain industry, on the other hand, direct incentive measures do not mean an incentive for micro-enterprises that do not have the capacity to administer these incentives. All these issues are addressed by the first work package. The project is divided into three work packages. The first work package is followed by a WP2, within which we will develop a methodological framework (model) for measuring the effects of selected types of tax measures on selected macroeconomic and specific objectives. We will use various quantitative methods, especially panel regression analyzes.
The collection of relevant and reliable data is also a major part of this WP. In the third work package, after identifying tax measures that will be included in the analysis and testing and building a model for measuring the impact of individual measures and impacts on macroeconomic objectives, it will be possible to determine the ‘success’ of each type of measure. Research to date, including for Slovenia, has shown that not all measures work the same in all countries. Consequently, it is therefore necessary to first identify the impacts that are detected through the use and testing of various methods through analysis in Slovenia. Based on the analysis of the data, we will identify the type of measure that ’causes’ the best effect and thus determine the type of incentive that is more acceptable to individual stakeholders.
The starting point of the research is therefore to define various measures whose effects we want to verify and to determine their impact on the achievement of selected goals.
The objectives of the project are therefore:
– delimit tax measures according to the type and impact of each type on the achievement of individual objectives (e.g. green and digital investments),
– examine the impact of different tax measures on macroeconomic indicators such as economic growth, productivity, general government revenue, competitiveness, employment, etc.,
– examine the role of fiscal measures in promoting desired investments in digitalisation and more efficient use of energy and green investments
Duration (from/to):
1. 10. 2022 – 31. 3. 2024
Contracting Authority:
Slovenian Research and Innovation Agency & Ministry of Finance
Financing:
The project is being financed with 331 yearly hours (A price category) for 18 months.
