Morley, B., 2010. Empirical Evidence on the Effectiveness of Environmental Taxes. Working Paper. Bath, UK: Department of Economics, University of Bath. (Bath Economics Research Working Papers; 02/10)
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.
|Item Type ||Reports/Papers (Working Paper)|
|Uncontrolled Keywords||partial adjustment, dynamic panel, pollution, environmental tax, energy|
|Departments||Faculty of Humanities & Social Sciences > Economics|
|Research Centres||Bath Economics Research|
|Additional Information||ID number: 02/10|
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