The research project aims to assess taxes, subsidies, fees, and charges in connection with natural resources such as petroleum products, forest resources, fisheries and mining in Ethiopia. The contribution of environmental taxes, fees and charges to domestic revenue collection and their relative share in GDP will be reviewed.
The issue of Environmental Fiscal Reform seems a very new area for Ethiopia. Hence, it would be useful, as a first step towards any policy advice, to have at least an overall overview of the taxation structure of the country, with emphasis on environmental policy instruments in general and taxes levied on natural resources in particular. Therefore, this research should start with compilation of data and information from pertinent establishments. It could, however, become a valuable instrument of research and policy advice when put into context and when comparisons are carried out across different countries/economies. Revenue collected from waste disposal in cities such as Addis Ababa, and other environmental instruments (non-fiscal instruments) that are in use to reduce environmental impacts will also be reviewed. Electricity and water supply tariffs will be assessed to check whether they are designed based on full cost recovery principle.