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Role of Green Taxes on Economic Growth Goals of Sustainable Development Directly and Through Environmental Performance: A System GMM Approach

Year 2024, Issue: 69, 56 - 65, 13.06.2024
https://doi.org/10.26650/JECS2022-1227500

Abstract

Based on the UN’s Millennium Development Goals, the Sustainable Development Goals (SDGs) are a global call to action that have led to structural changes in the means and objectives of countries’ economic policies since 2016. This study examines green tax policies that are crucial for achieving environmental goals and analyzes the impact thereof on economic goals. The role of green taxes in sustainable development is determined by analyzing the data of 32 selected Organisation for Economic Co-operation and Development (OECD) countries for 2000–2019 with the system generalized method of moments (GMM) approach. The model indirectly focuses on CO emissions per capita and econometrically analyzes the impact of green tax revenues on the growth rate of real GDP per capita. Moreover, this study was evaluated in light of the double dividend debate. The study results suggest that green taxes contribute to environmental efficiency and offer empirical evidence on economic sustainability indicators. Furthermore, as the ratio of green tax revenues in GDP increases in the selected countries, the economic goals of sustainable development are closer and the positive effect increases as the CO2 amount per capita decreases. In conclusion, harmonizing the basic principles of environmental policies with fiscal policies is crucial for combating environmental problems and for national economies.

Project Number

yok

References

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  • He, P., Zou, X., Qiao, Y., Chen, L., Wang, X., Luo, X., & Ning, J. (2019). Does the double dividend of environmental tax really play a role in OECD Countries? A study based on the panel ARDL model. Ekoloji, 28, 49-62. google scholar
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  • SDC (Sustainable Development Commission). (2022). History of sustainable development. Retrieved from https://www.sd-commission.org.uk/pages/history_sd.html google scholar
  • Segger Marie-Claire, C., & Khalfan, A. (2004). Origins of the sustainable development concept, sustainable development law: Principles, practices, and prospects, Oxford Academic, 15-24. google scholar
  • Siriwardana, M., Meng, S., & McNeill, J. (2011). The impact of a carbon tax on the Australian economy: results from a CGE model. Business, Economics and Public Policy Working Papers. School of Business, Economics and Public Policy Faculty of the Professions, University of New England. Retrieved from https://www.une.edu.au/__data/assets/pdf_file/0009/23877/econwp11-2.pdf google scholar
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  • UN (United Nations). (1992). Conference on environment and development: Rio declaration. Retrieved from https://www.un.org/en/conferences/environment/rio1992 google scholar
  • UN (United Nations). (2000). Millennium summit: Millennium declaration, New York. Retrieved from https://www.un.org/en/conferences/environment/newyork2000 google scholar
  • UN (United Nations). (2015). Sustainable development summit, New York. Retrieved from https://www.un.org/en/conferences/environment/newyork2015 google scholar
  • UNECE (United Nations Economic Commission for Europe). (2009). Measuring sustainable development. New York and Geneva: United Nations. Retrieved from https://sustainabledevelopment.un.org/index.php?page=view&type=400&nr=801&menu=1515 google scholar
  • Van Der Ploeg, F., & Ligthart, J.E. (1994). Sustainable growth and renewable resources in the global economy. In C. Carraro (Eds.), Trade, innovation, environment (pp. 259 –280), Volume 2. Netherlands: Kluwer Academic. google scholar
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Year 2024, Issue: 69, 56 - 65, 13.06.2024
https://doi.org/10.26650/JECS2022-1227500

Abstract

Supporting Institution

yok

Project Number

yok

Thanks

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References

  • ADB (Asian Development Bank). (2012). World sustainable development timeline [PDF document]. Retrieved from https://www.adb.org/sites/default/files/publication/29664/world-sustainable-development-timeline.pdf google scholar
  • Aldy, J.E., Ley, E., & Parry, I. (2008). A tax-based approach to slowing global climate change. National. Tax Journal, 61 (3), 493-517. google scholar
  • Andersen, M. S. (2004). Vikings and virtues: A decade of CO2 taxation. Climate Policy, 4(1), 13-24. google scholar
  • Andersen, M. S., Barker, T., Christie, E., Ekins, P., Gerald, J. F., Jilkova, J., Junankar, S., Landesmann, M., Pollitt, H., Salmons, R., Scott, S., & Speck S. (2007). Competitiveness effects of environmental tax reforms (COMETR). Final report to the European Commission. DK: National Environmental Research Institute, University of Aarhus. google scholar
  • Andre, F., Cardenete, M., & Velazquez, E. (2005). Performing an environmental tax reform in a regional economy. A computable general equilibrium approach. The Annals of Regional Science, Springer: Western Regional Science Association, 39(2), 375-392. google scholar
  • Arellano, M., & Bover, O. (1995), Another look at the instrumental variable estimation of error-components models, Journal of Econometrics, 68, 29-51. google scholar
  • Baranzini, A., Goldemberg, J., & Speck, S. (2000). A future for carbon taxes. Ecological Economics. 32(3), 395-412. google scholar
  • Blundell, R., & Bond, S. (1998), Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics, 87, 115-143. google scholar
  • Bond, S., Hoeffler, A., & Temple, J. ( 2001), GMM estimation of empirical growth models. Center for Economic Policy Research, Discussion Papers, No. 3048. google scholar
  • Bosquet, B. (2000). Environmental tax reform: Does it work? A survey of the empirical evidence. Ecological Economics, 34(1), 19-32. google scholar
  • Brundtland, G.H. (1987). Our common future: Report of the world commission on environment and development. Geneva, UN-Document A/42/427. Retrieved from http://www.un-documents.net/ocf-ov.htm google scholar
  • Fernando, S. F. (2019). The environmental effectiveness of carbon taxes: A comparative case study of the Nordic experience. In World Bank (Eds.), First international conference on carbon pricing (pp. 313-332). World Bank Working Paper Series. google scholar
  • Goodland, R. (1995). The concept of environmental sustainability. Annual Review of Ecology and Systematics, 26, 1-24. google scholar
  • Goulder, L. H. (1995). Environmental taxation and the double dividend: A reader’s guide. International Tax and Public Finance, 2, 157-183. google scholar
  • He, P., Zou, X., Qiao, Y., Chen, L., Wang, X., Luo, X., & Ning, J. (2019). Does the double dividend of environmental tax really play a role in OECD Countries? A study based on the panel ARDL model. Ekoloji, 28, 49-62. google scholar
  • IUCN (International Union for Conservation of Nature). (2022). About IUCN. Retrieved from https://www.iucn.org/about-iucn google scholar
  • Jeffrey, C., & Perkins, J.D. (2013). The impact of energy taxes on carbon dioxide emissions in the European Union. Working Paper. Iowa, IA, USA: Iowa State University. google scholar
  • Jeffrey, C., & Perkins, J.D. (2015). The association between energy taxation, participation in an emissions trading system, and the intensity of carbon dioxide emissions in the European Union. The International Journal of Accounting. 50(4), 397-417. google scholar
  • Larsen, B., & Nesbakken, R. (1997). Norwegian emissions of CO2 1987-1994. Environmental and Resource Economics, 9(3), 275-290. google scholar
  • Lin, B., & Li, X. (2011). The effect of carbon tax on per capita CO2 emissions. Energy Policy, 39(9), 5137-5146. google scholar
  • Markandya, A., Gonzalez-Eguino, M., & Escapa, M. (2012). Environmental fiscal reform and unemployment in Spain. In L. Kreiser, A. Y. google scholar
  • Sterling, P. Herrera, J. E. Milne & H. Ashiabor (Eds.), Carbon pricing, growth and the environment (pp. 1-16). Cheltenham: Edwar Elgar. google scholar
  • Maxim, M., Zander, K., & Patuelli, R. (2019). Green tax reform and employment double dividend in European and Non-European countries: A meta-regression assessment. International Journal of Energy Economics and Policy, 9(4), 342-355. google scholar
  • McDougall, R. A. (1993). Short-run effects of a carbon tax. Centre of Policy Studies/IMPACT Centre Working Papers. Retrieved from https://www.copsmodels.com/ftp/workpapr/g-100.pdf google scholar
  • Menard, S. (2001). Applied logistic regression analysis (2nd ed.). London: SAGE Publications. google scholar
  • Mirovic, V., Kalas, B., & Milenkovic, N. (2021). Panel cointegration analysis of total environmental taxes and economic growth in EU countries. Economic Analysis, 54, 92-103. google scholar
  • Morley, B., & Abdullah, S. (2014). Environmental taxes and economic growth: Evidence from panel causality tests. Energy Economics, 42, 27-33. google scholar
  • OECD (Organisation for Economic Co-operation and Development). (2001). Gloassary of statical terms: piguovian tax. Retrieved from https://stats.oecd.org/glossary/detail.asp?ID=2065 google scholar
  • Pearce, D. (1991). The role of carbon taxes in adjusting to global warming. Economic Journal, 101, 938-948. google scholar
  • Ricci, F. (2007). Channels of transmission of environmental policy to economic growth. Ecological Economics, 60, 688-69. google scholar
  • SDC (Sustainable Development Commission). (2022). History of sustainable development. Retrieved from https://www.sd-commission.org.uk/pages/history_sd.html google scholar
  • Segger Marie-Claire, C., & Khalfan, A. (2004). Origins of the sustainable development concept, sustainable development law: Principles, practices, and prospects, Oxford Academic, 15-24. google scholar
  • Siriwardana, M., Meng, S., & McNeill, J. (2011). The impact of a carbon tax on the Australian economy: results from a CGE model. Business, Economics and Public Policy Working Papers. School of Business, Economics and Public Policy Faculty of the Professions, University of New England. Retrieved from https://www.une.edu.au/__data/assets/pdf_file/0009/23877/econwp11-2.pdf google scholar
  • Taxation and Customs Union EC. (2022). Green taxation-in support of a more sustainable future. Retrieved from https://taxation-customs.ec.europa.eu/green-taxation-0_en google scholar
  • Tullock, G. (1967). Excess benefit. Water Resources Research, 3(2), 643-644. google scholar
  • UN (United Nations). (1992). Conference on environment and development: Rio declaration. Retrieved from https://www.un.org/en/conferences/environment/rio1992 google scholar
  • UN (United Nations). (2000). Millennium summit: Millennium declaration, New York. Retrieved from https://www.un.org/en/conferences/environment/newyork2000 google scholar
  • UN (United Nations). (2015). Sustainable development summit, New York. Retrieved from https://www.un.org/en/conferences/environment/newyork2015 google scholar
  • UNECE (United Nations Economic Commission for Europe). (2009). Measuring sustainable development. New York and Geneva: United Nations. Retrieved from https://sustainabledevelopment.un.org/index.php?page=view&type=400&nr=801&menu=1515 google scholar
  • Van Der Ploeg, F., & Ligthart, J.E. (1994). Sustainable growth and renewable resources in the global economy. In C. Carraro (Eds.), Trade, innovation, environment (pp. 259 –280), Volume 2. Netherlands: Kluwer Academic. google scholar
  • Yerdelen Tatoğlu, F. (2020). İleri panel veri analizi: Stata uygulamalı. 4. Baskı. İstanbul: Beta Basım Yayım Dağıtım. google scholar
There are 41 citations in total.

Details

Primary Language English
Subjects Sociology (Other)
Journal Section Research Articles
Authors

Gülçin Kaya İnceiplik 0000-0001-6181-4153

Onur Şimşek 0000-0003-2411-8655

Project Number yok
Publication Date June 13, 2024
Submission Date December 31, 2022
Published in Issue Year 2024 Issue: 69

Cite

APA Kaya İnceiplik, G., & Şimşek, O. (2024). Role of Green Taxes on Economic Growth Goals of Sustainable Development Directly and Through Environmental Performance: A System GMM Approach. Journal of Economy Culture and Society(69), 56-65. https://doi.org/10.26650/JECS2022-1227500
AMA Kaya İnceiplik G, Şimşek O. Role of Green Taxes on Economic Growth Goals of Sustainable Development Directly and Through Environmental Performance: A System GMM Approach. Journal of Economy Culture and Society. June 2024;(69):56-65. doi:10.26650/JECS2022-1227500
Chicago Kaya İnceiplik, Gülçin, and Onur Şimşek. “Role of Green Taxes on Economic Growth Goals of Sustainable Development Directly and Through Environmental Performance: A System GMM Approach”. Journal of Economy Culture and Society, no. 69 (June 2024): 56-65. https://doi.org/10.26650/JECS2022-1227500.
EndNote Kaya İnceiplik G, Şimşek O (June 1, 2024) Role of Green Taxes on Economic Growth Goals of Sustainable Development Directly and Through Environmental Performance: A System GMM Approach. Journal of Economy Culture and Society 69 56–65.
IEEE G. Kaya İnceiplik and O. Şimşek, “Role of Green Taxes on Economic Growth Goals of Sustainable Development Directly and Through Environmental Performance: A System GMM Approach”, Journal of Economy Culture and Society, no. 69, pp. 56–65, June 2024, doi: 10.26650/JECS2022-1227500.
ISNAD Kaya İnceiplik, Gülçin - Şimşek, Onur. “Role of Green Taxes on Economic Growth Goals of Sustainable Development Directly and Through Environmental Performance: A System GMM Approach”. Journal of Economy Culture and Society 69 (June 2024), 56-65. https://doi.org/10.26650/JECS2022-1227500.
JAMA Kaya İnceiplik G, Şimşek O. Role of Green Taxes on Economic Growth Goals of Sustainable Development Directly and Through Environmental Performance: A System GMM Approach. Journal of Economy Culture and Society. 2024;:56–65.
MLA Kaya İnceiplik, Gülçin and Onur Şimşek. “Role of Green Taxes on Economic Growth Goals of Sustainable Development Directly and Through Environmental Performance: A System GMM Approach”. Journal of Economy Culture and Society, no. 69, 2024, pp. 56-65, doi:10.26650/JECS2022-1227500.
Vancouver Kaya İnceiplik G, Şimşek O. Role of Green Taxes on Economic Growth Goals of Sustainable Development Directly and Through Environmental Performance: A System GMM Approach. Journal of Economy Culture and Society. 2024(69):56-65.