SavedAdd your journal

Journals / Economics Business and Organization Research / 2019 / Cilt: 1 - Sayı: 1

Environmental Taxes and Carbon dioxide Emission in EU Countries: A Panel VAR Approach

AB Ülkelerinde Çevre Vergileri ve Karbondioksit Emisyonu: Panel VAR Yaklaşımı

Onur POLAT
Pages
20–33
Publication Date
2019-12-30
DOI
—
🏛️Bibliographic metadata and full text access for this article are provided via DergiPark.
DergiPark Record ↗
✨

AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

Even though, various policies should be applied simultaneously and globally to mitigate the deleterious effects of green gas emissions for humanity and the environment along with environmental taxes.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:In this study, we analyze propagation mechanisms between environmental taxes and carbon dioxide emission in EU states by employing the panel VAR (PVAR) model.
📊
Key Findings & Data:In this respect, we use annual data that consists of GDP (current US$ per capita), CO2 emission (metric ton per capita), energy use (kg of oil equivalent per capita) and environmental tax revenues (proportion of GDP) from 1995 through 2014 for 24 EU countries in the PVAR model and identify short/long run transmission mechanisms between the variables.
💡
Conclusion & Impact:Even though, various policies should be applied simultaneously and globally to mitigate the deleterious effects of green gas emissions for humanity and the environment along with environmental taxes.
🔬Design:Modeling & Simulation
📍Scope:2014 Verileri
⚙️Variables:Çevre Vergileri · CO2 emisyonu · Panel VAR

Abstract

In this study, we analyze propagation mechanisms between environmental taxes and carbon dioxide emission in EU states by employing the panel VAR (PVAR) model. In this respect, we use annual data that consists of GDP (current US$ per capita), CO2 emission (metric ton per capita), energy use (kg of oil equivalent per capita) and environmental tax revenues (proportion of GDP) from 1995 through 2014 for 24 EU countries in the PVAR model and identify short/long run transmission mechanisms between the variables. Cross-sectional dependence is tested by the Peseran’s CD test and the second-generation panel unit root test is carried out to determine stationarity of the variables. The empirical findings of the study underline the significance of environmental taxes in mitigating CO2 emission and accordingly propose the environmental taxes in internalizing negative externalities along with other policy tools. Even though, various policies should be applied simultaneously and globally to mitigate the deleterious effects of green gas emissions for humanity and the environment along with environmental taxes.

Özet

In this study, we analyze propagation mechanisms between environmental taxes and carbon dioxide emission in EU states by employing the panel VAR (PVAR) model. In this respect, we use annual data that consists of GDP (current US$ per capita), CO2 emission (metric ton per capita), energy use (kg of oil equivalent per capita) and environmental tax revenues (proportion of GDP) from 1995 through 2014 for 24 EU countries in the PVAR model and identify short/long run transmission mechanisms between the variables. Cross-sectional dependence is tested by the Peseran’s CD test and the second-generation panel unit root test is carried out to determine stationarity of the variables. The empirical findings of the study underline the significance of environmental taxes in mitigating CO2 emission and accordingly propose the environmental taxes in internalizing negative externalities along with other policy tools. Even though, various policies should be applied simultaneously and globally to mitigate the deleterious effects of green gas emissions for humanity and the environment along with environmental taxes.

🔖

Cite This Article

POLAT, O. (2019). Environmental Taxes and Carbon dioxide Emission in EU Countries: A Panel VAR Approach. Economics Business and Organization Research, Cilt: 1 - Sayı: 1, 20–33. https://ajindex.com/articles/751798

📄 Full Text PDF Viewer

📄

PDF görüntüleyici hazırlanıyor...

References (10)

  1. Abdullah, S., & Morley, B. (2014). Environmental taxes and economic growth: Evidence from panel causality tests. Energy Economics, 42, 27-33.
  2. Allan, G., Lecca, P., McGregor, P., & Swales, K. (2014). The economic and environmental impact of a carbon tax for Scotland: a computable general equilibrium analysis. Ecological Economics, 100, 40-50. André, F. J., Cardenete, M. A., & Velázquez, E. (2005). Performing an environmental tax reform in a regional economy. A computable general equilibrium approach. The Annals of Regional Science, 39(2), 375-392.
  3. Andrews, D. (2005). Cross section regression with common shocks. Econometrica 73, 1551-1585.
  4. Andrews, D. W., & Lu, B. (2001). Consistent model and moment selection procedures for GMM estimation with application to dynamic panel data models. Journal of Econometrics, 101(1), 123-164.
  5. Boehringer, C., Garcia-Muros, X., & González-Eguino, M. (2019). Greener and fairer: A progressive environmental tax reform for Spain (Vol. 418, No. 19). Oldenburg Discussion Papers in Economics. Bosquet, B. (2000). Environmental tax reform: does it work? A survey of the empirical evidence. Ecological economics, 34(1), 19-32.
  6. Bruvoll, A., & Larsen, B. M. (2004). Greenhouse gas emissions in Norway: do carbon taxes work? Energy policy, 32(4), 493-505.
  7. Canova, F., & Ciccarelli, M. (2013). Panel Vector Autoregressive Models: A Survey. In VAR Models in Macroeconomics–New Developments and Applications: Essays in Honor of Christopher A. Sims (pp. 205-246). Emerald Group Publishing Limited. Chudik, A., & Pesaran, M. H. (2013). Large panel data models with cross-sectional dependence: a survey. CAFE Research Paper, (13.15). Ekins, P., Summerton, P., Thoung, C., & Lee, D. (2011). A major environmental tax reform for the UK: Results for the economy, employment and the environment. Environmental and Resource Economics, 50(3), 447-474.
  8. Elliott, J., & Fullerton, D. (2014). Can a unilateral carbon tax reduce emissions elsewhere? Resource and Energy Economics, 36(1), 6-21. Eurostat. (2017a, 12 5). Retrieved from Environmental Tax Revenues: http://ec.europa.eu/eurostat/web/products-datasets/-/t2020_rt320 Eurostat. (2017b, 12 9). Retrieved from Environmental Taxes: http://ec.europa.eu/eurostat/web/environment/environmental-taxes
  9. Fisher, E. O. N., & Marrewijk, C. V. (1998). Pollution and economic growth. Journal of International Trade & Economic Development, 7(1), 55-69.
  10. Gemechu, E. D., Butnar, I., Llop, M., & Castells, F. (2014). Economic and environmental