Germany's interest in environmental tax reform was seen "as part of a more general overhaul of the tax system, [as] the German ETR was largely motivated to facilitate the allocation of production processes and demand towards technological innovation, and the creation of additional jobs.
"
The German Institute for Economic Research (DIW) corroborated this by reporting in 1994 that “energy consumption and unemployment would considerable decrease and unemployment would considerably decrease,
” approximating that 600,000 new jobs would be created over 10 years. Moreover, they found that there would no significant negative effect on GDP growth or inflation.
