Taxation & dimensions of sustainability : essays on evaluating and designing tax policies for individuals and companies

Kurzfassung/Abstract

In this thesis, I evaluate different tax policy reforms or tax policies in general with respect to the three pillars of sustainability: the environmental, the economic, and the social pillar. The cumulative dissertation consists of the following four chapters:
Chapter 1: Towards Green Driving - Income Tax Incentives for Plug-in Hybrids (based on joint work with Henning Giese)
Chapter 2: Corporate Taxation and Firm Performance (based on joint work with Dominika Langenmayr, Valeria Merlo, and Georg Wamser)
Chapter 3: Tax Avoidance Using Hybrid Financial Instruments Among European Countries
Chapter 4: Avoiding Taxes: Banks’ Use of Internal Debt (based on joint work with Franz Reiter and Dominika Langenmayr)
The first chapter relates to the environmental dimension of sustainability. More specifically, I evaluate a specific German tax reform that aimed at reducing greenhouse gas emissions in the transportation sector – a key driver of emissions – by fostering green driving. This essay empirically investigates whether a preferential tax treatment for hybrid plug-in company cars was effective in fostering green driving and whether it was cost-efficient.
The second chapter relates to the economic dimension of sustainability. A subgoal towards more sustainability in this dimension is decent economic growth. Chapter 2 of this thesis contributes to the question of how tax policy can foster firm performance which is an important driver for economic growth. This essay empirically investigates the relationship between corporate taxation and firm performance taking into account firm heterogeneity. As tax policy is an essential instrument for reaching political goals like boosting the economy in crises, this essay may provide valuable insights for policymakers.
The third and fourth chapters relate to the social dimension of sustainability. A subgoal towards more sustainability in this dimension is increased international cooperation. With respect to taxation, the global challenge of multinational firms engaging in tax avoidance made international cooperation in tax policy essential in the last decade. Chapter 3 investigates a specific channel of tax avoidance, i.e., tax avoidance with hybrid financial instruments. This legal analysis reveals tax avoidance opportunities among selected European countries and evaluates countermeasures.
Chapter 4 investigates a different channel of tax avoidance, i.e., intragroup debt finance, specifically for the banking sector. I use administrative data to empirically analyse whether and to what extent multinational banks engage in tax avoidance.