Keywords
environmental taxes
environmental policy effectiveness
How to Cite
Abstract
The purpose of the article is to examine whether environmental taxes affect the level of nitrogen oxides (NOx) and sulfur oxides (SOX) emissions based on the data for 33 countries in the years 1996-2021. The research method used is the analysis of panel regression with fixed effects. For both pollutants, a model without lags and models with one-year and two-year lags were estimated. The results show that environmental tax revenues have a negative and statistically significant but rather symbolic impact on SOx emissions, while these revenues do not affect NOx emissions. In addition, the gross domestic product (GDP) per capita and the share of the urban population in the total population are found to be significant determinants of NOx emissions. The higher the GDP per capita and the share of the urban population, the lower the NOx emissions per capita. The results can be useful for policymakers in assessing the effectiveness of environmental taxes.
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