The role of tax exemptions on ownership of electric or hybrid vehicles in complying with climate change agreements signed by Brazil

Abstract

This study's research problem is to verify how the exemption from property taxes on electric or hybrid vehicles contributes to compliance with international agreements on climate change to which Brazil is a signatory. To this end, the general objective is to develop a comprehensive analytical framework of extra-fiscal measures, such as exemptions and incentives, for electric and hybrid cars. The specific objectives defined aim to identify the main international agreements on climate change that Brazil has signed, evaluate the effectiveness of tax exemptions as a public policy instrument for reducing greenhouse gas emissions in Brazil, and offer a broad overview of the incentives adopted by the federated states. The methodology combines an exploratory approach with a systematic literature review. Exploratory research seeks to understand carbon taxation and its contribution to international agreements. The bibliographical review uses laws and decrees regarding Brazilian emissions and the measures for granting exemptions, in addition to research in databases such as ResearchGate and Google Scholar, which will consolidate knowledge about the efficiency of carbon taxation compared to other environmental policies. It is justified by providing information on the efficient implementation of measures in line with international agreements and highlighting synergies with other environmental policies. Finally, the conclusions lead to the perception that as the federative units began to propose tax incentives, the transition to a cleaner fleet intensified.