Do Environmental Taxes and Green Electricity Matter for Environmental Quality? Fresh Evidence in France Based on Fourier Methods

Seyed Alireza Athari (), Kwaku Addia, Dervis Kirikkaleli, Souha Hanna Al Geitany, Latifa Al Fadhel and Chafic Saliba
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Seyed Alireza Athari: Business School, Holy Spirit University of Kaslik, Jounieh 1200, Lebanon
Kwaku Addia: Faculty of Economics and Administrative Sciences, European University of Lefke, Lefke 99800, Turkey
Dervis Kirikkaleli: Faculty of Economics and Administrative Sciences, European University of Lefke, Lefke 99800, Turkey
Souha Hanna Al Geitany: Business School, Holy Spirit University of Kaslik, Jounieh 1200, Lebanon
Latifa Al Fadhel: School of Business, Bahrain Polytechnic, Isa Town 33349, Bahrain
Chafic Saliba: Business School, Holy Spirit University of Kaslik, Jounieh 1200, Lebanon

Energies, 2025, vol. 18, issue 19, 1-24

Abstract: The environment has generally served as the foundation and support of human existence and survival over the years through agricultural development, health supply, industrialization, and transportation. This process has resulted in massive environmental degradation. In this postindustrial period, global consensus calls for taking steps to rebalance the degraded environment by planning economic development and social progress while preserving the quality of the environment. In recent years, experts have recognized key factors affecting the quality of the environment where policy is required. The study seeks to explore the impacts of ecological taxes and green electricity on the quality of the environment in France. The work employed Fourier ADL cointegration, novel Fourier autoregressive distributive lag econometric (N-ARDL), and Fourier Toda Yamamoto causality methods. The outcomes of the N-ARDL long-run cointegration estimates imply that both environmental tax and green electricity improve environmental quality in France. Furthermore, the Fourier Toda Yamamoto causality test denotes that both green electricity and environmental tax affect environmental quality in France without a rebound effect. The results recommend that since the “bonus–malus” system of France has suffered a significant rebound effect, the economy could reverse this with environmental taxes focused on reducing pollution. Additionally, the government of France could commit to its current alternative energy plan of 560 TWh of decarbonized electricity yearly from 463 TWh, given the fact that the energy sector is responsible for approximately 11% of total greenhouse gas (GHG) emissions.

Keywords: environmental tax; green electricity; sustainability; Fourier; method; France (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2025
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