The Role of Carbon Tax in the Paradox of Environmental Quality and Economic Growth: An Application on Finland With the ARDL Approach

Caner Dilber
Additional contact information
Caner Dilber: Çankırı Karatekin University

Journal of Finance Letters (Maliye ve Finans Yazıları), 2025, vol. 40, issue 124, 371-393

Abstract: Global warming and climate crisis have made it necessary to increase measures regarding environmental quality. As the energy consumption required for economic growth increases, the damage to the environment may reach irreversible levels. In the broader discourse on climate change and the reduction of CO2 emissions, the policy of carbon taxation has proven to be highly effective. In the present study, the impact of the carbon tax on CO2 emissions in Finland is analyzed within the framework of the Environmental Kuznets Curve. For the analysis, the Autoregressive Distributed Lagged Model (ARDL) model was used by adjusting the data between 1991-2022. The results of the study show that carbon tax implementation, although not robust in the short run, is highly effective in reducing CO2 emissions in the long run.

Keywords: Economic Growth; Environmental Quality; Carbon Tax; CO2 Emissions (search for similar items in EconPapers)
JEL-codes: H23 O44 Q52 Q54 (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://dergipark.org.tr/tr/download/article-file/4917995 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:acc:malfin:v:40:y:2025:i:124:p:371-393

DOI: 10.33203/mfy.1709946

Access Statistics for this article

Journal of Finance Letters (Maliye ve Finans Yazıları) is currently edited by Süleyman Kale

More articles in Journal of Finance Letters (Maliye ve Finans Yazıları) from Maliye ve Finans Yazıları Yayıncılık Ltd. Şti.
Bibliographic data for series maintained by Süleyman Kale ().