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By Mbah, Igarlay

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In particular, the CSI dominated the political debate after the introduction of the first uniform CO2 tax. The Hjalmarsson Commission had been heavily influenced by the CSI's proposals. Also, the CSI campaign had given the main labour union, the LO, second thoughts about the number of jobs at stake. Hence, the LO changed its initial position from accepting uniform taxation to one of backing-up industry in its claim for tax differentiation (as was the case in Denmark and Norway). In this way, aggressive industrial rent-seeking from early 1991 led to green tax reform and lower tax levels for industry in the 1993 reform.

In contrast, several new industrial organizations had entered the arena, most notably, the electric utility industry. The CDI repeated the argument that the CO2 taxation proposal would increase total job losses and that none of the refund systems were attractive because they would lead to a devastating redistribution of the manufacturing sector (Finansministeriet 1994b). In general, organizations representing energy-intensive firms were most active and strongly opposed the new CO2 tax proposal whereas the labour-intensive organizations were somewhat reluctant to respond.

Concerning refund systems, the Dithmer Commission proposed that refunds should take place as reduced payments for labour market services and/or through subsidizing environmental investments (Finansministeriet 1995b, 6). Even though producers, compared to consumers, were clearly favoured in both Dithmer Commission proposals, they did not accept it. Both the CDI and the LO were by now opposed to the tax and met with the government. They opposed both models and requested a voluntary agreement approach (Jyllandsposten 27 February 1995).

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African Socialism - An Anarchist Critique by Mbah, Igarlay

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