ENVIRONMENTAL TAXES AND EMISSIONS OF POLLUTANTS IN THE EU: EMPIRICAL ANALYSIS

Viktor Koziuk, Oleksandr Dluhopolskyi, Kazymyr Voznyi

Abstract


The system of environmental taxes in EU countries is expected to have an impact on reducing greenhouse gas emissions. Since 2010 the emphasis on environmental regulation has shifted towards the EU 2020 strategy. This research continues the previous author’s studies about the environmental measurement of welfare economics. The article tests the hypothesis of the inverse effect of the environmental taxation level on CO2 emissions. The method of cross-correlation analysis was used to confirm the hypothesis. As the dependent variables were chosen emission indicators (CO2, PM2.5mg), and as the independent variables were selected environmental taxes, the share of renewable energy, the number of businesses in the country that have an environmental certificate ISO 14001. The level of environmental taxation has a significant impact on the amount of CO2 emissions in the direction of their reduction. The share of renewable energy in final consumption also has a significant impact on the dynamics of changes in the amount of CO2. The analysis of environmental tax revenues in the EU  showed the dominance of their fiscal component over the regulatory one.


Keywords


environmental taxes, EU member states, pollution, public good, welfare economics, correlation analysis, energy tax, transport tax, pollution tax, resource tax

Full Text:

PDF

References


Anita, S., Capasso, V., Kunze, H., & la Torre, D. (2016). Optimizing Environmental Taxation on Physical Capital for a Spatially Structured Economic Growth Model Including Pollution Diffusion. Vietnam Journal of Mathematics, (45), 199-206.

Birdsall, N., & Wheeler, D. (1993). Trade policy and industrial policy in Latin America – where are the pollution havens. World Bank Discussion Paper, (1), pp. 159-167.

Cole, M.A., Elliott, R.J., & Zhang, L. (2017). Foreign direct investment and the environment. Annual Review of Environment and Resources, 42(1), 465-487.

Costantini, V., & Mazzanti, M. (2012). On the Green and Innovative Side of Trade Competitiveness? The Impact of Environmental Policies and Innovation on EU Exports. Elsevier Research Policy, (41), 132-153.

Dasgupta, P., & Mäler, K. (2000). Net national product, wealth, and social well-being. Environment and Development Economics, 5(1), 69-93.

Dluhopolskyi, O., Koziuk, V., Ivashuk, Y., & Klapkiv, Y. (2019). Environmental welfare: quality of policy vs. society’s values. Problemy Ekorozwoju / Problems of Sustainable Development, 14(1), 19-28.

Dluhopolskyi, O., Koziuk, V., Ivashuk, Y., Panukhnik, O., & Virkovska, A. (2019). Empirical evaluation of preferences by ecological factors of the individual welfare of Ukrainians. Journal of Geology, Geography, and Geoecology, 28(1), 39-50.

Druzin, B.H. (2016). A plan to strengthen the Paris agreement. Fordham Law Review, (84).

Dunning, J.H. (1998). Location and the multinational enterprise: a neglected factor. Journal of International Business Studies, 40(1), 45-66.

Environmental tax revenues (2020). Retrieved from: https://appsso.eurostat.ec.europa.eu/nui.

Environmental taxes make way to protect the environment (2018). Retrieved from: https://www.iberdrola.com/environment/green-and-environmental-taxes.

EUROSTAT (2019). Environmental tax statistics. Retrieved from: https://ec.europa.eu/eurostat.

Fullerton, D., Leicester, A., & Smith, S. (2010). Environmental Taxes. Oxford: Oxford University Press.

He, P., Zhang, Y., Yuan, Y., Qiao, Y., Xin, L., & Zou, X. (2019). The relationship between environmental taxation, environmental performance, and economic growth: a comparative study of Sweden and China 1985-2016. Ecology, 28(107), 401-410.

Heine, D., Norregaard, J., & Parry, W.H. (2012). Environmental tax reform: principles from theory and practice to date. IMF Working Papers, (180).

Koziuk, V., Dluhopolskyi, O., Hayda, Y., & Klapkiv, Y. (2019a). Does education quality drive ecological performance? Case of high and low developed countries. Global Journal of Environmental Science and Management, 5(S1), 22-32.

Koziuk, V., Dluhopolʹsʹkyy, O., Hayda, YU., Ivashuk, YU., Shymansʹka, O., Vozʹnyy, K., & Dluhopolʹsʹka, T. (2019). Ekolohichnyy vymir derzhavy dobrobutu: monohrafiya. K.: Lira-K, 224 p.

Koziuk, V., Hayda, Y., Dluhopolskyi, O., & Klapkiv, Y. (2019b). Stringency of environmental regulations vs. global competitiveness: an empirical analysis. Economics and Sociology, 12(4), 264-284.

Koziuk, V., Hayda, Y., Dluhopolskyi, O., Martynyuk, V., & Klapkiv, Y. (2020). Efficiency of environmental taxation in European countries: a comparative analysis. Naukovyi Visnyk Natsionalnoho Hirnychoho Universytetu, (5) (in progress).

Kuralbayeva, K. (2019). Environmental taxation, employment, and public spending in developing countries. Environmental & Resource Economics, 72(4), 877-912.

Merko, F., Dursun, S., & Merko, F. (2018). Environmental taxation – the effects on environmental effectiveness and economic efficiency. International Journal of Ecosystems and Ecology Science, 8(4), 739-746.

Panayotou, T. (2003). Economic growth and the environment. Economic survey of Europe / Ed. United Nations Economic Commission for Europe. New York: United Nations Publishing.

Pigou, A. (2013). The Economics of Welfare. London: Palgrave Macmillan.

Stavins, R. (2006). Market-based environmental policies: what can we learn from U.S. experience (and related research)? Moving to markets in environmental regulation. Oxford University Press.

Stec, M., & Grzebyk, M. (2016). The implementation of the Strategy Europe 2020 objectives in European Union countries: the concept analysis and statistical evaluation. Quality and Quantity, 52(1).


Refbacks

  • There are currently no refbacks.