In 1992 Denmark instituted a tax of 100 DK per metric ton of CO2. The amount of tax differs according to the type of fuel, specifically its carbon content. The carbon tax is 242 DK per metric ton on coal, but only 178 DK per metric ton on lignite. The amount of the carbon tax constitutes less than a third of taxes on petroleum coke, 26% of tax on electricity and 12% of tax on gas used as motor fuel. Gasoline (but not diesel), natural gas, and biofuels are exempt, and the value added tax registered businesses generally receive 50% rebates on their payments. Such rebates are intended to assist large, energy-intensive businesses. Households receive no rebates. Carbon taxes on electricity generated by renewable energies and fuels are offset by subsidies of 0.10-0.17 DK per KWh.
