Environmental Taxation and CO₂ Emission Management

Abstract

Due to the obvious ozone layer depletion and continual contamination of the air and water, environmental protection has become a global priority. In an environmentally challenged country like Nigeria, the difficulty of having clean water and air is a significant cause for environmental taxes to become unavoidable. Although these taxes are presently levied in the form of fines for gas flaring, gas exploration tax, and petroleum profit tax, which are 85 percent more than the standard business income tax of 30 percent of revenues. The argument is based on the fact that the business operations of the oil and gas sector cause a significant degree of pollution to the environment. As a result, this research looks at the influence of environmental taxes on CO 2 emission control in Nigeria. The research spans the years 2010 to 2020. According to the regression findings, the gas exploration tax has an inconsequential negative influence on CO 2 emission management, but the petroleum profit tax has a negligible positive impact on CO 2 emission control. On the other side, the cost of environmental preservation has a large beneficial influence on CO 2 emission control. As a result, the study suggests the implementation of more suitable environmental taxes and levies in order to lower pollution levels in Nigeria.

Economic-environmental assessment of emission tax policy in developing countries: evidence from Iran

“…In Nigeria, exploratory efforts have been made to leverage environmental taxes, such as the gas exploration tax and the petroleum profit tax, to curb CO 2 emissions. However, these efforts have yielded inconsequential and negligible impacts on CO 2 emission control (Omodero et al, 2022). In Latin America and the Caribbean (LAC) countries, the implementation of environmental taxes and renewable energy has shown promise in reducing CO 2 emissions, with renewable energy having a higher mitigation effect than environmental taxes (Wolde-Rufael and Mulat-Weldemeskel, 2022).…”

“…In Nigeria, exploratory efforts have been made to leverage environmental taxes, such as the gas exploration tax and the petroleum profit tax, to curb CO 2 emissions. However, these efforts have yielded inconsequential and negligible impacts on CO 2 emission control (Omodero et al. , 2022).…”