{"title":"The effects of environmental taxes on environmental pollution in the member states of the European Union","authors":"Snežana Ugrinov","doi":"10.1016/j.ecosys.2025.101308","DOIUrl":null,"url":null,"abstract":"<div><div><span><span><span>This paper examines the effectiveness of environmental taxes as a potential instrument for mitigating climate and environmental problems. The relationship between environmental taxes and indicators of </span>air quality and environmental protection is examined with a sample of 28 countries (26 member states of the European Union, Norway, and Iceland) in the period 1996–2022. The dynamic panel models are estimated using the system–generalized method of moments proposed by Blundell and Bond (1998), as it is suitable for addressing potential endogeneity issues. Empirical analysis reveals that total environmental taxes are generally associated with a decline in </span>greenhouse gas emissions and air pollution. Energy taxes appear to be the most effective type, as an increase of 1 percent in these taxes is associated with a reduction in total greenhouse gas (GHG) emissions of 0.5 percent for three prior years. In particular, energy taxes are effective for decreasing carbon dioxide (CO</span><sub>2</sub><span>) emissions as well for other kinds of emissions and air pollutants. However, there is not enough evidence to confirm the contribution of transportation taxes and taxes on pollution and resource use to an overall decline in emissions and air pollution. This study contributes to the literature by providing ex-post empirical evidence on the effectiveness of environmental taxes in reducing GHG emissions and improving air quality in several European countries.</span></div></div>","PeriodicalId":51505,"journal":{"name":"Economic Systems","volume":"49 3","pages":"Article 101308"},"PeriodicalIF":3.3000,"publicationDate":"2025-04-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Economic Systems","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0939362525000202","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
This paper examines the effectiveness of environmental taxes as a potential instrument for mitigating climate and environmental problems. The relationship between environmental taxes and indicators of air quality and environmental protection is examined with a sample of 28 countries (26 member states of the European Union, Norway, and Iceland) in the period 1996–2022. The dynamic panel models are estimated using the system–generalized method of moments proposed by Blundell and Bond (1998), as it is suitable for addressing potential endogeneity issues. Empirical analysis reveals that total environmental taxes are generally associated with a decline in greenhouse gas emissions and air pollution. Energy taxes appear to be the most effective type, as an increase of 1 percent in these taxes is associated with a reduction in total greenhouse gas (GHG) emissions of 0.5 percent for three prior years. In particular, energy taxes are effective for decreasing carbon dioxide (CO2) emissions as well for other kinds of emissions and air pollutants. However, there is not enough evidence to confirm the contribution of transportation taxes and taxes on pollution and resource use to an overall decline in emissions and air pollution. This study contributes to the literature by providing ex-post empirical evidence on the effectiveness of environmental taxes in reducing GHG emissions and improving air quality in several European countries.
期刊介绍:
Economic Systems is a refereed journal for the analysis of causes and consequences of the significant institutional variety prevailing among developed, developing, and emerging economies, as well as attempts at and proposals for their reform. The journal is open to micro and macro contributions, theoretical as well as empirical, the latter to analyze related topics against the background of country or region-specific experiences. In this respect, Economic Systems retains its long standing interest in the emerging economies of Central and Eastern Europe and other former transition economies, but also encourages contributions that cover any part of the world, including Asia, Latin America, the Middle East, or Africa.