The role of environmental tax on the environmental quality in EU counties: evidence from panel vector autoregression approach


Creative Commons License

Savranlar B., ERTAŞ S. A., ASLAN A.

Environmental Science and Pollution Research, vol.31, no.24, pp.35769-35778, 2024 (SCI-Expanded) identifier identifier

  • Publication Type: Article / Article
  • Volume: 31 Issue: 24
  • Publication Date: 2024
  • Doi Number: 10.1007/s11356-024-33632-z
  • Journal Name: Environmental Science and Pollution Research
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus, IBZ Online, ABI/INFORM, Aerospace Database, Agricultural & Environmental Science Database, Aqualine, Aquatic Science & Fisheries Abstracts (ASFA), BIOSIS, CAB Abstracts, EMBASE, Environment Index, Geobase, MEDLINE, Pollution Abstracts, Veterinary Science Database, Civil Engineering Abstracts
  • Page Numbers: pp.35769-35778
  • Keywords: C23, CO2 emissions, EKC hypothesis, Environmental tax, European Union, H23, PVAR, Q53
  • Erciyes University Affiliated: Yes

Abstract

This study intends to analyze the influence of environmental taxes on pollution in EU-27 nations. Furthermore, energy from renewable sources consumption and urbanization are employed to clarify CO2 emissions in this study that tests the EKC hypothesis. According to the findings, an increase in environmental taxes reduces CO2 emissions by 0.14%. Also, the data supported the validity of the EKC concept. The findings of the causality test demonstrated that there is a bidirectional causal link between CO2 emissions and environmental taxes. These results reflect that environmental tax revenues contribute to sustainability as an effective policy tool in EU countries. Policies regarding environmental tax enforcement come to the fore in terms of both keeping the balance in economic activities and serving sustainability.