Environmental taxes, reforms and economic growth: an empirical analysis of panel data

Hassan, Mahmoud; Oueslati, Walid; Rousselière, Damien

doi:10.1016/j.ecosys.2020.100806

Cited by 63 publications

(22 citation statements)

References 46 publications

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“…These conditions can reduce economic growth and increase the recession. At this time, the risk of declining investment increases (Wang et al , 2019; Chiroleu-Assouline and Fodha, 2014; Pang, 2019; Si et al , 2021; Summers, 2015; Hassan et al , 2020; Hamaguchi, 2020). As a result, environmental taxes can indeed help to reduce the emission of most pollutants, but they also hurt GDP.…”

Section: Literature Reviewmentioning

confidence: 99%

“…As a result, environmental taxes can indeed help to reduce the emission of most pollutants, but they also hurt GDP. Since environmental tax revenue is negatively related to economic growth; thus, environmental taxes may reduce GDP (Li and Masui, 2019; Si et al , 2021; Hassan et al , 2020).…”

Section: Literature Reviewmentioning

confidence: 99%

“…As a result, there is a double benefit. ETR has other benefits such as reducing unemployment (due to lower labor taxes) and increasing social welfare (Aubert and Chiroleu-Assouline, 2019; Ekins et al , 2011; Chiroleu-Assouline and Fodha, 2014; Ekins, 1999; Pang, 2019; Hassan et al , 2020; Cherry et al , 2014; Jacobs and van der Ploeg, 2019; Oueslati, 2015; Lans Bovenberg and de Mooij, 1997; Goulder, 1995).…”

Section: Literature Reviewmentioning

confidence: 99%

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Fuzzy AHP-TOPSIS method for ranking the solutions of environmental taxes implementation to overcome its barriers under fuzzy environment

Khodamipour

Shahamabad

2021

JAAR

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PurposeMany developed countries have been using environmental taxes in their economic systems for many years. These taxes have a great impact on reducing the environmental damages of companies and individuals in society. But many developing countries have not used this tool effectively yet, and some countries face barriers to the effective implementation of environmental taxes that make it difficult and unsuccessful. To increase the effectiveness of the implementation of environmental taxes, governments must prioritize barriers and solutions to overcome its barriers. The identified knowledge gap of the pre-literature review is that an overview of the identification which completely considers all barriers and solutions of environmental taxes implementation does not exist. In response to this knowledge gap, this study aims to identify and prioritize the barriers and solutions of environmental taxes implementation.Design/methodology/approachRanking the barriers and solutions is a complicated multi-criteria decision making (MCDM) problem that requires consideration of multiple feasible alternatives and conflicting tangible and intangible criteria. This study addresses the prioritization of solutions of Environmental Taxes implementation by proposing hybrid MCDM methods based on the Fuzzy Analytic Hierarchy Process (Fuzzy-AHP) and the Fuzzy Technique for order preference by similarity to an ideal solution (Fuzzy-TOPSIS) under fuzzy environment. Fuzzy AHP is used to determine the weight of each barrier using a pairwise comparison, and fuzzy TOPSIS is used to finalize the ranking of solutions for more effective implementation of environmental taxes.FindingsThe results showed that environmental tax reform (ETR) (S3) has the highest value among the solutions for more effective implementation of environmental taxes. The result of the proposed model is validated by performing sensitivity analysis.Research limitations/implicationsThis study could foster research on the discussion of these barriers and precise ways of implementing solutions to pay more attention to environmental taxes.Practical implicationsRatings of solutions can be a guide and help governments to improve the implementation of environmental taxes or even develop this policy by being aware of the ranking of barriers and solutions.Social implicationsThis paper creates a new perspective on the effective implementation of environmental taxes, which is closely related to improving environmental performance and increasing social welfare through improving the tax system.Originality/valueFor the first time, this study comprehensively identifies barriers and solutions for more effective implementation of environmental taxes and ranks them using two MCDM techniques.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

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Fuzzy AHP-TOPSIS method for ranking the solutions of environmental taxes implementation to overcome its barriers under fuzzy environment

Khodamipour

Shahamabad

2021

JAAR

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“…Past research examined the impact of some general environmental taxes on economic growth. Hassan et al (2020aHassan et al ( , 2020b examined the relationship between both energy-based taxes and more general environmental taxes, and economic growth with panel data on 31 OECD countries from 1994 to 2003. They found that energybased taxes negatively affected economic growth in the short run with the magnitude of the effect varying with the country's degree of dependence on polluting energy.…”

Section: Environmental Taxes and Regulationsmentioning

confidence: 99%

Does green policy pay dividends?

Aziz

Hossain

Lamb

2021

Environ Econ Policy Stud

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While there is a near global consensus about the need to address climate change, most countries are hesitant to employ sufficiently stringent policies in fear of sacrificing economic growth. The objective of this research is to examine the impact of environmental policy on economic growth, using the OECD's Environmental Policy Stringency (EPS) index across 21 OECD countries from 1990 to 2014. An augmented Solow Model with the inclusion of variables to represent human capital, trade openness and the EPS index is used to assess whether policy stringency affects growth with empirical analysis comprised of a pooled mean group estimator, dynamic OLS, fixed effects and pooled OLS to estimate the short and long run effects. The results reveal that policy stringency negatively affects economic growth in the short run but pays dividends of positive growth in the long run. There appears to be a threshold level of the EPS, beyond which the dividend is realized in the long run. The results are expected to be of interest to policy makers who strive to address climate change without trading off economic growth.

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“…The intensification of environmental investment in the national economy to ensure sustainable development has been considered under various approaches, one of which is taxation (Fullerton, Kim, 2006;Zhao, Zhou, Kuang, 2019;Hassan, Oueslati, Rousselière, 2020). According to the analysed researches, the environmental tax acts as an instrument of environmental protection, however, the efficiency of environmental financing will increase in the case of decentralization of taxation that will bring the priorities of financing as close as possible to the specific environmental problems of certain areas.…”

Section: Literature Reviewmentioning

confidence: 99%

Management of Sustainable Entrepreneurship Adaptation to Tax Changes in Environmental Investment

Kvach

Piatka

Koval

2020

BJES

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The article highlights the problem of management of sustainable entrepreneurship adaptation to tax changes in environmental investment and substantiation of the conceptual basis for assessing the efficiency of environmental investment in terms of Ukraine’s integration processes into European community that involves introduction of sustainable economic development and mechanisms of “green” economy. Methods. A study of the peculiarities of environmental financing in Ukraine has been conducted. The theoretical bases of investment management have been examined by means of the following methods: semantic analysis of interaction of the basic elements of environmental investment process for sustainable entrepreneurship development. With the use of a comparative analysis of environmental investment, efficiency and effectiveness of environmental tax collection in Ukraine and the EU countries, the expedience of using environmental taxation as a means of stimulating domestic environmental investment has been substantiated and the need to assess the efficiency of environmental investment has been defined. Results. A study of the peculiarities of domestic environmental taxation in order to establish its efficiency has been carried out. The experience of using taxes as a means of stimulating environmental investment in the EU countries has been under consideration. This research has shown that the efficiency of environmental taxes is ensured by their high rates, which encourage companies to innovate and make appropriate environmental investments. A number of shortcomings in the domestic environmental policy have been identified. It has proven the low efficiency of its instruments, in particular, related to assessing the efficiency of environmental investment. A study of the peculiarities of environmental financing in Ukraine has been conducted. The current tendencies of investment in environmental activities with the identification of causal relationships to substantiate management decisions to improve the use of financial resources for environmental purposes have been highlighted.

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Environmental taxes, reforms and economic growth: an empirical analysis of panel data

Cited by 63 publications

References 46 publications

Fuzzy AHP-TOPSIS method for ranking the solutions of environmental taxes implementation to overcome its barriers under fuzzy environment

Fuzzy AHP-TOPSIS method for ranking the solutions of environmental taxes implementation to overcome its barriers under fuzzy environment

Does green policy pay dividends?

Management of Sustainable Entrepreneurship Adaptation to Tax Changes in Environmental Investment

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