Panel Cointegration Analysis of Total Environmental Taxes and Economic Growth in EU Countries
Panel Cointegration Analysis of Total Environmental Taxes and Economic Growth in EU Countries
Author(s): Vera Mirović, Branimir Kalaš, Nada MilenkovićSubject(s): Economy
Published by: Institut ekonomskih nauka
Keywords: environment taxation;economic growth;panel cointegration;EU countries;
Summary/Abstract: The paper investigates the nexus between total environmental taxes and economic growth for twenty-eight EU countries from 1994 to 2018. The objective of this research is to evaluate the long run relationship between these variables based on panel data analysis. The analysis includes panel cointegration test as well as panel ordinary least squares such as DOLS and FMOLS models. The results identify long-run relationship between total environmental taxes and economic growth in selected countries. Likewise, there is a significant relation running from total environmental taxes to economic growth measured by gross domestic product rate. Empirical findings confirm that revenue of environmental taxes have positive impact on economic growth measured by gross domestic product rate.
Journal: Economic Analysis
- Issue Year: 54/2021
- Issue No: 1
- Page Range: 92-103
- Page Count: 12
- Language: English
