Do Environmental Taxes Improve Environmental Quality? Evidence from OECD Countries
Do Environmental Taxes Improve Environmental Quality? Evidence from OECD Countries

Summary/Abstract: This article investigates the relationship between environmentally related taxes introducedin OECD countries and air pollution, represented by carbon dioxide and greenhouse gas emissionlevels in the atmosphere. The article makes a statistical analysis of data on environmentaltaxes, specifically energy and transport taxes, and other variables that might affect air qualityin the OECD member countries. The ARDL model used on the panel data of all OECDmember countries shows statistical significance in only one out of five models. A subsequentcomparative analysis of the reduced sample of OECD countries that are members of the EUexhibits a statistically significant effect of environmentally related tax revenues on the airemission levels, indicating that this relationship is present in the reduced sample

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