Environmental Taxes in the Long Run: An Expository Note

2012 ◽  
Author(s):  
Henrik Vetter
Keyword(s):  
Environmental Taxes ◽  
Long Run

Impact of Environmental Tax on Comparative Advantage of Food and Food Products: A Study of G20 Countries in Light of Environmentally Sensitive Goods

2021 ◽  
pp. 001946622110352
Author(s):  
Alisha Mahajan ◽  
Kakali Majumdar
Keyword(s):  
Comparative Advantage ◽  
Food Products ◽  
Environmental Taxes ◽  
Environmental Tax ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Environmentally Sensitive ◽  
The Relationship

Many countries are under constant fear that environmental policies might negatively influence the international competitiveness of polluting industries. In this study, we aim to evaluate the relationship and impact of the environmental tax on comparative advantage of trade in food and food products industry, considered to be one of the highly environmentally sensitive industries. This study also investigates, whether this relationship differs among countries covered in G20, with the help of correlation analysis. We select panel autoregressive distributed lag approach for this study as it can analyse long-run as well as short-run association even when the variables are stationary at different orders of integration. Using panel data from G20 countries over the period of 21 years that is from 1994 to 2015, it is concluded that when we allow environmental taxes to interact with the revealed comparative advantage (RCA) of G20 nations, the overall impact of the environmental tax on the RCA is negative in the long period. It is therefore suggested that countries should follow Porter hypothesis to stimulate innovations resulting from strict environmental regulations that affect the environment in least possible manner. JEL Codes: C01, C23, C33, F18, O57, Q5

scholarly journals Fiscal and Budgetary Policy Efforts towards Climate Change Mitigation in Romania

2021 ◽  
Vol 13 (5) ◽  
pp. 2802
Author(s):  
Nicoleta Mihaela Florea ◽  
Georgeta-Madalina Meghisan-Toma ◽  
Silvia Puiu ◽  
Flaviu Meghisan ◽  
Marius Dalian Doran ◽  
...  
Keyword(s):  
Climate Change ◽  
Environmental Protection ◽  
Greenhouse Gas Emissions ◽  
Greenhouse Gas ◽  
Environmental Taxes ◽  
Gas Emissions ◽  
Budgetary Policy ◽  
Long Run ◽  
Green Taxes ◽  
Short Run

To mitigate the negative effects of climate change on the environment, the Member States of the European Union implement fiscal measures and commit budgetary expenditures to ensure sustainable economic development. Romania, in line with the Union’s objectives, resorted to the application of a system of environmental taxes and provided in the budgetary policy government expenditures for environmental protection. The aim of the research is to highlight the effects of these measures on the environment by analysing the short-run and long-run causal relationships between greenhouse gas emissions, green taxes and government expenditures on environmental protection. Autoregressive Distributed Lag (ARDL) method and Granger causality tests were used to demonstrate the existence of these relationships and the intensity with which they manifest. Following the analysis, we identified a significant long-run influence of government spending on environmental protection on greenhouse gas emissions but also numerous short-run and long-run causal relationships between greenhouse gas emissions and green taxes, applied in Romania. The results of the research consider the impact of public expenses for environment protection, a variable not yet applied for Romania, on greenhouse gas emissions’ decrease, in correlation with environmental taxes per source of origin.

Environmental Taxes and Economic Growth with Multiple Growth Engines

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Hamid Beladi ◽  
Ping-ho Chen ◽  
Hsun Chu ◽  
Mei-ying Hu ◽  
Ching-chong Lai
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Capital Accumulation ◽  
Output Growth ◽  
Environmental Taxes ◽  
Environmental Tax ◽  
Environmental Disaster ◽  
Long Run ◽  
Endogenous Growth Model ◽  
Relative Productivity

Abstract We develop an endogenous growth model in which long-run growth is driven by three engines: private abatement R&D, expanding-variety R&D, and capital accumulation. We show that an environmental tax activates private abatement by directing researchers from the variety R&D sector to the abatement R&D sector, which helps the economy avoid the environmental disaster. Our results also show that the effect of the environmental tax on long-run growth is uncertain, depending mainly on the relative productivity between the two R&D sectors. If the abatement R&D sector is sufficiently productive, increasing the environmental tax will enhance the balanced output growth rate and social welfare.

scholarly journals The Effects of Environmental Tax On Ecological Footprint and Carbon Dioxide Emissions: a Nonlinear Cointegration Analysis On Turkey

2021 ◽  
Author(s):  
Osman Murat Telatar ◽  
Nagihan Birinci
Keyword(s):  
Carbon Dioxide ◽  
Nonlinear Analysis ◽  
Carbon Dioxide Emissions ◽  
Ecological Footprint ◽  
Cointegration Analysis ◽  
Environmental Taxes ◽  
Annual Data ◽  
Environmental Tax ◽  
Nonlinear Methods ◽  
Long Run

Abstract This article presents a nonlinear analysis in Turkey on the effect of an environmental tax (ET) on the ecological footprint (EF) and carbon dioxide (CO2) emissions. In the literature, most of the studies examining the effects of Environmental Taxes (ETs) on Environmental Degradation (ED) have used linear methods. The number of studies examining this relationship with nonlinear methods is few. However, there is no study examining the long-run effects of ETs on the EF, which is one of the most important indicators of ED, using nonlinear analysis. This study contributes to the literature by investigating the long-run effects of ETs on EF and CO2 emissions in Turkey by nonlinear analysis. Therefore, the model consisting of annual data for the period 1994–2019 was estimated by Dufrénot et al. (2006) nonlinear cointegration test. According to the estimation results obtained, ETs do not have any long-run effects on EF and CO2 emissions. Accordingly, it can be concluded that ETs in Turkey do not affect preventing ED.

scholarly journals Relationships between economic growth, CO2 emissions, and innovation for nations with the highest patent applications

2018 ◽  
Vol 9 (2) ◽  
pp. 47-69 ◽  
Author(s):  
Mahmoud Tnani
Keyword(s):  
Economic Growth ◽  
Population Size ◽  
Co2 Emissions ◽  
High Technology ◽  
Well Being ◽  
Electricity Production ◽  
Environmental Taxes ◽  
Photovoltaic Systems ◽  
Long Run ◽  
Short Run

This study aims to provide insight on the nexus between innovation, economic growth and CO2 emissions. In order to achieve this, data on potential factors such as innovation, environmental taxes, research and development (R&D) spending, electricity production, population size, high-technology exports and prices of photovoltaic systems are collected for the sample of the leading innovative countries over the period from 1990 to 2014. Based on a cointegrated panel methodology and a vector error correction model, the long-run, as well as the short-run dynamics of all possible combinations between the variables under study, are estimated. The results reveal that except for China, economic growth is mainly driven by electricity production, population size, CO2 emissions and R&D spending. However, innovation was found to have lesser effect on economic growth. In addition to that, the authors found evidence in favor of CO2 emissions being affected positively by population size and prices of photovoltaic systems and negatively by environmental taxes, high-technology exports, R&D spending and innovation. Moreover, on the contrary to population size, well-being is positively affected by CO2 emission and R&D spending.

Finn Kydland and Edward Prescott: Driving Forces behind Economic Cycles (2004 Nobel Prize in Economics)

2005 ◽  
pp. 133-143 ◽  
Author(s):  
E. Balashova
Keyword(s):  
Nobel Prize ◽  
Driving Forces ◽  
Microeconomic Theory ◽  
Business Cycle Theory ◽  
Economic Cycles ◽  
Cyclical Fluctuations ◽  
Long Run ◽  
Time To Build ◽  
New Business ◽  
Extensive Research Program

The method of analyzing and modeling cyclical fluctuations of economy initiated by F. Kydland and E. Prescott - the 2004 Nobel Prize winners in Economics - is considered in the article. They proposed a new business cycle theory integrating the theory of long-run economic growth as well as the microeconomic theory of consumers and firms behavior. Simple version of general dynamic and stochastic macroeconomic model is described. The given approach which was formulated in their fundamental work "Time to Build and Aggregate Fluctuations" (1982) gave rise to an extensive research program and is still used as a basic instrument for investigating cyclical processes in economy nowadays.

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