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Empirical Evidence on the Effectiveness of Environmental Taxes


Reference:

Morley, B., 2010. Empirical Evidence on the Effectiveness of Environmental Taxes. Working Paper. Bath, U. K.: Department of Economics, University of Bath. (Bath Economics Research Papers; 02/10)

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    Official URL:

    http://www.bath.ac.uk/economics/research/working-papers

    Abstract

    The aim of this study is to determine whether environmental taxes affect levels of pollution and energy consumption. Using a panel of EU members and Norway, we find a significant negative relationship between taxes and pollution, but no relationship with energy consumption. A further contribution to the literature involves the use of the Arellano-Bover approach to dynamic panels, to account for the potential partial adjustment towards desired or target levels of pollution and energy usage. The results provide evidence of partial adjustment, as well as evidence of the negative relationship between environmental taxes and pollution.

    Details

    Item Type Reports/Papers (Working Paper)
    CreatorsMorley, B.
    Uncontrolled Keywordspartial adjustment, dynamic panel, pollution, environmental tax, energy
    DepartmentsFaculty of Humanities & Social Sciences > Economics
    Research CentresBath Economics Research
    StatusPublished
    ID Code18105

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