The current study Green Economy Fiscal Policy Analysis: Ghana focuses on the revenue component of Ghana’s government budget, selecting the options with the most potential to improve environmental quality and to create the preconditions for green economy investment. In view of these two goals, the study concentrates on the energy and transportation sectors, which are at once responsible for the largest contributions to both local and global pollution in Ghana and provide the best options for generating additional fiscal space for green investment.
The core proposal advanced in this study is to reform the energy policy of Ghana through the effective removal of the system of administered pricing that creates the subsidies and the reform of energy product taxation based on the correction of the externalities they produce. For each of the policy measures suggested, the study assesses the costs and benefits of intervention and the expected environmental impact.
Finally, this study also considers the current structure of vehicle taxation in Ghana in order to exploit synergies between fiscal instruments applied to energy and transport and lay out some suggestions for reform.