The heterogeneous effects of environmental taxation on green technologies

K.B. Tchorzewska, Jose Garcia-Quevedo and Ester Martínez-Ros

Research Policy, 2022, vol. 51, issue 7

Abstract: This paper analyses the effectiveness of environmental taxation in stimulating the adoption of end-of-pipe and cleaner production technologies across manufacturing and mining firms between 2008 and 2014. We perform simple and categorical treatment matching of firms to study the heterogeneous effects of different taxation levels. We assess the effects between firms forced to pay environmental taxation (treated) and those that did not have to pay such taxes (controls), as well as between different levels of environmental taxation (small, medium, large). We find that low levels of environmental taxation are ineffective at stimulating green technology adoption. As the taxation level increases, so does the associated effect on green technology investment. Additionally, we find that even low levels of environmental taxation can be effective when combined with public financing. In this case, the effect is stronger than that of providing public financing alone.

Keywords: Environmental taxation; Doses; Policy-mix; Green technologies (search for similar items in EconPapers)
JEL-codes: H21 H23 H25 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:respol:v:51:y:2022:i:7:s0048733322000671

DOI: 10.1016/j.respol.2022.104541

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