Lessons from Northern Europe. Lessons for France from the Swedish carbon tax - Summary

Is carbon taxation, considered to be one of the most effective policies for reducing greenhouse gas (GHG) emissions at the lowest cost, the Sisyphean myth of French climate policies? In the face of three failed attempts of the tax in 2000, 2009 and 2018, it has to be said that its implementation is a real challenge. Sweden, however, has achieved the feat of taxing at nearly 120 Euros per ton of CO₂ equivalent (teq.CO₂) without causing a social uproar or penalizing economic activity. So what are the explanatory factors of these divergent trajectories, from failure on the one hand to success on the other? Based on a systematic comparison between Sweden and France, this report first examines the design and characteristics of the Swedish and French carbon taxes. Secondly, it estimates the effect of the two taxes on GHG emissions and gross domestic product (GDP), replicating the work of Andersson (2019). After demonstrating the environmental effectiveness of carbon taxation and its low economic cost, the note explores its social acceptability, drawing on dedicated literature and a qualitative survey including protest figures (the 'Yellow Jackets' movement and its Swedish equivalent, the 'Braensleupproret'). On this basis, it explains why rejection of the carbon tax was stronger in France than in Sweden. Finally, 10 recommendations are put forward for relaunching carbon pricing in France, taking into account the empirical lessons learned and the European initiative to set up a new emissions trading market covering the building and road transport sectors