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Leonidas Milios

Leonidas Milios

Postdoctoral fellow

Leonidas Milios

Towards a Circular Economy Taxation Framework : Expectations and Challenges of Implementation


  • Leonidas Milios

Summary, in English

The transition to a circular economy is a complex process requiring wide multi-level and multi-stakeholder engagement and can be facilitated by appropriate policy interventions. Taking stock of the importance of a well-balanced policy mix that includes a variety of complementing policy instruments, the circular economy action plan of the European Union (COM(2020) 98 final) includes a section about “getting the economics right” in which it encourages the application of economic instruments. This contribution presents a comprehensive taxation framework, applied across the life cycle of products. The framework includes (1) a raw material resource tax, (2) reuse/repair tax relief, and (3) a waste hierarchy tax at the end of life of products. The research is based on a mixed method approach, using different sources to analyse the different measures in the framework. More mature concepts, such as material resource taxes, are analysed by reviewing the existing literature. The analysis of tax relief on repairs is based on interviews with stakeholders in Sweden, where this economic policy instrument has been implemented since 2017. Finally, for the waste hierarchy tax, which is a novel proposition in this contribution, macroeconomic modelling is used to analyse potential impacts of future implementation. In all cases, several implementation challenges are identified, and potential solutions are discussed according to literature and empirical sources. Further research is required both at the individual instrument and at the framework level. Each of the tax proposals needs a more detailed examination for its specificities of implementation, following the results of this study.


  • The International Institute for Industrial Environmental Economics

Publishing year







Circular Economy and Sustainability





Document type

Journal article


Springer Nature Switzerland AG


  • Environmental Engineering


  • circular economy
  • economic policy
  • resources tax
  • resource efficiency
  • waste tax




  • ISSN: 2730-5988