Exploring the Role of Carbon Taxation Policies on CO 2 Emissions: Contextual Evidence from Tax Implementation and Non-Implementation European Countries

Assaad Ghazouani, Wanjun Xia, Mehdi Ben Jebli and Umer Shahzad
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Assaad Ghazouani: Faculty of Legal, Economic and Management Sciences, University of Jendouba, Jendouba 8189, Tunisia
Wanjun Xia: School of Statistics and Applied Mathematics, Anhui University of Finance and Economics, Bengbu 233030, China
Mehdi Ben Jebli: Faculty of Legal, Economic and Management Sciences, University of Jendouba, Jendouba 8189, Tunisia
Umer Shahzad: School of Statistics and Applied Mathematics, Anhui University of Finance and Economics, Bengbu 233030, China

Sustainability, 2020, vol. 12, issue 20, 1-16

Abstract: During the past decades, environmental related taxes, energy, and carbon taxes has been recommended by environmental scientists as a policy tool to mitigate pollutant emissions in developed and developing economies. Among developed nations, Denmark, Finland, Sweden, the Netherlands, and Norway were the first regions to adopt a tax on carbon dioxide (CO 2 ) emissions and research into the impacts of carbon tax on carbon emissions bring significant implications. The prime objective and goal of this work is to explore the role of carbon tax reforms for environmental quality in European economies. This is probably the first study to conduct a comparative study in European context for carbon-tax implementation and non-implementation policies. To this end, the present study reports new conclusions and implications regarding the effectiveness of environmental regulations and policies for climate change and sustainability. In the present study, the authors exhaustively explore the impacts of the carbon-tax on the mitigation of CO 2 emissions. Using the propensity score matching method, the results of the estimation of the different matching methods allow us to observe a positive and significant impact of the adoption of the carbon-tax on stimulating the reduction of carbon emissions.

Keywords: carbon-tax; CO 2 emissions; environmental related taxes; environmental regulations; propensity score method (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (38)

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