Last week, the Danish Government announced a new infrastructure plan which included an aim to increase the motorway and railway network considerably by the year 2035. However, a key question for this strategy will be where the many raw materials that will be used for such an ambitious expansion will come from.

Our Managing Economist Signe Rølmer Vejgaard has written a LinkedIn Pulse article on this subject which you can read here (in Danish).

Copenhagen Economics has collaborated closely with the Danish Regions in contributing to this debate. In the summer of 2020, we found that a hike in the raw material tax from the current DKK 5.27 to DKK 10 per m3 would result in increased tax revenue of almost DKK 130 million annually, but at the same time reduce the combined GDP contribution from raw material extraction, the construction industry, concrete industry and brickworks by approximately DKK 43 million annually through decreased sales in Denmark.

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For more information, please contact Managing Economist Signe Rølmer Vejgaard