Farm tax may push jobs abroad
Jørgen E. Olesen, a professor at Aarhus University, warns that a CO2 tax on agriculture could shift jobs overseas without benefiting the climate due to uneven competition from countries without such a tax. Around 35% of greenhouse gas reductions in Danish agriculture may occur abroad, known as the leakage rate, according to economist Lars Gårn Hansen. Despite potential increased emissions abroad, The Economic Council believes the tax would have a genuine climate impact. An expert panel is reported to recommend a maximum agriculture CO2 tax of 750 DKK per ton. Three models with varying rates have been proposed, with the highest being 750 DKK and the other two at 350 and 150 DKK per ton, respectively. The government’s platform highlights designing the tax to support competitiveness and prevent job losses. Olesen suggests a gradual phase-in for the tax and thinks EU-level decisions would be more effective.