The effects of environmental taxes on environmental pollution and unemployment: A panel co‐integration analysis on the validity of double dividend hypothesis for selected African countries

Tunahan Degirmenci and Mehmet Aydin

International Journal of Finance & Economics, 2023, vol. 28, issue 3, 2231-2238

Abstract: In this study, the validity of the double dividend hypothesis for several African countries (Cameroon, Ivory Coast, Mali, South Africa, and Uganda) is investigated for the period of 1994–2017. The double dividend hypothesis claims that, in addition to reducing environmental pollution, environmental taxes can also increase employment. In this study, the validity of this hypothesis is examined with panel co‐integration and long‐run estimators. According to the findings obtained, environmental taxes increased environmental degradation and unemployment in Cameroon, environmental degradation in the Ivory coast, environmental degradation and employment in Mali, environmental restoration in South Africa and employment in Uganda. When the individual results obtained from the study are evaluated in general, it can be said that the double dividend hypothesis is not valid for African countries. The study proposes that taxation should be used as a financial incentive rather than a command‐and‐control policy to combat unemployment and environmental degradation.

Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://doi.org/10.1002/ijfe.2505

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:wly:ijfiec:v:28:y:2023:i:3:p:2231-2238

Ordering information: This journal article can be ordered from
http://jws-edcv.wile ... PRINT_ISSN=1076-9307

Access Statistics for this article

International Journal of Finance & Economics is currently edited by Mark P. Taylor, Keith Cuthbertson and Michael P. Dooley

More articles in International Journal of Finance & Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().