An International Comparative Study of Environmental Taxes

Environmental sustainability constitutes a strategic priority for Germany, with the circular economy serving a crucial function in its realization. Circular practices foster sustainable development by decreasing reliance on finite resources, minimizing waste, and reducing greenhouse gas (GHG) emissions. The circular economy provides ecological advantages and strengthens economic resilience through the promotion of innovation, enhancement of supply chain efficiency, and creation of green jobs. Complementary measures, including the preservation of natural capital, the enactment of structural economic reforms, and the implementation of environmental taxes, enhance sustainability objectives. Ecosystem conservation enhances carbon absorption, structural changes facilitate low-emission industries, and environmental taxes incorporate environmental costs. In contrast, industrial activity continues to be a significant contributor to GHG emissions, necessitating policy examination. This study analyzes the relationships between the circular economy, natural capital, structural change, environmental taxation, and industrial activities on GHG emissions in Germany from the first quarter of 2010 to the fourth quarter of 2022. The study employs wavelet coherence analysis (WCA), fully modified ordinary least squares (FMOLS), and dynamic ordinary least squares (DOLS), demonstrating that circular economy practices, natural capital, structural changes, and environmental taxes significantly reduce GHG emissions. Conversely, industrial activities continually elevate GHG emissions in Germany. Moreover, WCA further reveals the time–frequency dynamics and co-movement patterns between key variables and GHG emissions, enabling the detection of both short-term and long-term dependencies. The results indicate that enhancing environmental sustainability in Germany could be effectively achieved by mandating the integration of recycled materials within key industrial sectors to improve environmental sustainability, which would help lower resource extraction and related GHG emissions.

PurposeMany developed countries have been using environmental taxes in their economic systems for many years. These taxes have a great impact on reducing the environmental damages of companies and individuals in society. But many developing countries have not used this tool effectively yet, and some countries face barriers to the effective implementation of environmental taxes that make it difficult and unsuccessful. To increase the effectiveness of the implementation of environmental taxes, governments must prioritize barriers and solutions to overcome its barriers. The identified knowledge gap of the pre-literature review is that an overview of the identification which completely considers all barriers and solutions of environmental taxes implementation does not exist. In response to this knowledge gap, this study aims to identify and prioritize the barriers and solutions of environmental taxes implementation.Design/methodology/approachRanking the barriers and solutions is a complicated multi-criteria decision making (MCDM) problem that requires consideration of multiple feasible alternatives and conflicting tangible and intangible criteria. This study addresses the prioritization of solutions of Environmental Taxes implementation by proposing hybrid MCDM methods based on the Fuzzy Analytic Hierarchy Process (Fuzzy-AHP) and the Fuzzy Technique for order preference by similarity to an ideal solution (Fuzzy-TOPSIS) under fuzzy environment. Fuzzy AHP is used to determine the weight of each barrier using a pairwise comparison, and fuzzy TOPSIS is used to finalize the ranking of solutions for more effective implementation of environmental taxes.FindingsThe results showed that environmental tax reform (ETR) (S3) has the highest value among the solutions for more effective implementation of environmental taxes. The result of the proposed model is validated by performing sensitivity analysis.Research limitations/implicationsThis study could foster research on the discussion of these barriers and precise ways of implementing solutions to pay more attention to environmental taxes.Practical implicationsRatings of solutions can be a guide and help governments to improve the implementation of environmental taxes or even develop this policy by being aware of the ranking of barriers and solutions.Social implicationsThis paper creates a new perspective on the effective implementation of environmental taxes, which is closely related to improving environmental performance and increasing social welfare through improving the tax system.Originality/valueFor the first time, this study comprehensively identifies barriers and solutions for more effective implementation of environmental taxes and ranks them using two MCDM techniques.

The article examines the experience of European countries in the implementation of environmental taxes in order to determine the prospects for its implementation in domestic conditions. The essence of the concept of ecological tax is revealed. It was found that environmental taxes should be understood as a kind of compensation for damage caused to the environment. Therefore, the volume of the environmental tax should cover the amount of funding for the implementation of nature protection measures and correspond to the volume of damage caused to the environment. In general, the problem in the field of ecology in Ukraine is quite similar to this kind of problems at the global level, which is why there is a need to consider the experience of European countries in the implementation of environmental taxes in order to determine the prospects for its implementation in domestic conditions. The features of environmental taxation in European countries are considered. European countries direct the paid environmental taxes mainly to the improvement of investment and innovation development in the field of environmental protection. At the same time, environmental taxes are an important tool for solving the problem of redistributing monetary resources in the direction of improving the financing of programs aimed at rational use of nature and preserving the quality of the environment. Unfortunately, in domestic conditions, environmental taxes today only fiscally direct the system of collection of environmental payments. The types of environmental taxes in Europe are given. Problematic aspects in the field of environmental taxation in Ukraine have been studied. It has been established that today the basis of such a legislative framework has already been formed in Ukraine, however, with the deepening of globalization processes, it needs some improvement, in particular, first of all, it is worth paying attention to the use of a comprehensive approach to the greening of the national economy, which requires the implementation of a set of measures to reduce the burden on the environment environment.

Additional social welfare of environmental regulation: The effect of environmental taxes on income inequality

This study examines the influence of environmental taxes on the shadow economy for a global sample of 61 countries in two subsamples (high‐income group—HIG and low‐ and middle‐income group—LMG) with data available from 2002 to 2018. Environmental taxes are found to increase the shadow economy significantly across the globe and two subsamples. The proportion of the shadow economy of GDP rises by about 0.201 percentage points on average when the environment taxes to GDP ratio increases by one percentage point. We use a simultaneous equations model to delve into the mechanisms through which environmental taxes might exert their influence, which we find to be transmitted through two main channels, namely, unemployment and the tax burden. Increases in environmental taxes cause higher unemployment and increase the tax burden, resulting in greater informal economic activities. Interestingly, among the four different forms of environmental taxes, an energy tax expands the shadow economy consistently across samples. Pollution and resource taxes have a positive effect on the shadow economy, primarily in HIG. Taxes on energy appear to increase unemployment and then cause an increase in the size of the shadow economy. In contrast, taxes on pollution, resources and transport seem to be associated with a higher tax burden, which causes an increase in the size of the shadow economy. In general, a crucial policy consideration involves the careful selection of environmentally related taxes that do not disrupt primary economic activities. The findings also suggest that the implementation of environmental taxes should be accompanied by policies designed to mitigate the potential adverse impacts on unemployment and the tax burden, both of which can impose significant societal costs.

The article analyzes the concept of green fiscal policy, which involves the use of tax instruments to promote environmentally sustainable development, the history of implementation and the main principles of environmental taxation in European countries - Germany, Sweden, Denmark. Particular attention is paid to mechanisms for stimulating business and the population to reduce greenhouse gas emissions and switch to renewable energy sources. Various approaches to environmental taxation are studied, namely: the introduction of taxes on carbon emissions and the use of natural resources, as well as subsidy and tax rebate programs that promote the green transition. It is emphasized that Europe’s experience in implementing environmental taxes is an example for other countries striving for high environmental standards and sustainable development. It is emphasized that green taxation not only contributes to environmental protection, but also has a positive impact on the economy, namely: on employment, innovation and competitiveness, on stimulating the development of new technologies and creating jobs in the green sector of the economy. The issue of social justice in the context of environmental taxation is investigated, in particular the impact of taxes on different social groups of the population. Examples of successful projects that combine environmental goals with economic benefits are given, including the creation of new jobs in renewable energy and efficient use of resources. International agreements and initiatives (the Paris Agreement and the European Green Deal) aimed at promoting environmental taxation are analyzed, with significant attention paid to studying the contribution of international institutions to financing green projects, as well as the role of international organizations in assessing the effectiveness of environmental taxes. The analysis of the role of international cooperation in the implementation of green fiscal policy shows that coordination of efforts of various subjects of international law at the global level is an important aspect both for the successful implementation of green fiscal policy and in general for combating climate change and environmental protection.

Tea is an important cash crop and a beverage that is widely consumed across the world. In China (the largest producer of tea), the industry is growing, and there is a need to understand current greenhouse gas (GHG) emissions and sequestrations and the potential for mitigation so that climate action can be strategically undertaken. Life cycle assessment and carbon footprint methods were used to quantify emissions in tea cultivation and processing in the 16 major producing regions for the year 2017. The system boundary was from cradle to factory gate, which was divided into three subsystems, namely agricultural materials production, tea production and tea processing. Several units of analysis were chosen: the production region (province), the production area (ha) and the product (kg loose tea), etc. Total GHG emissions were 28.75 Mt CO2eq, which were mainly attributable to energy use in tea processing (41%), fertilizer production (31.6%) and soil emissions (26.7%). This equated to 12.0 t CO2eq per ha and 10.8 kg CO2eq per kg processed tea. Production in Hubei, Yunan, Guizhou, Sichuan and Fujian provinces contributed almost two thirds of industry emissions, representing priority areas for strategic action to reduce GHG emissions. At the same time, the total carbon sink amounted to 21.37 MtCO2, representing 74.3% of total GHG emissions. The proportions stored in soil, biomass, and tea production were 49.3%, 30.0%, and 20.7%, respectively. If best recommended management practices for fertilizer application were adopted and biomass was used as a source of energy for tea processing, the GHG emissions reduction potential was 16.66 Mt CO2eq, or 58% of total emissions. The GHG emissions associated with tea production and processing in China appeared high by comparison to other regions of the world. However, considering the carbon sink and emissions reduction potential, the tea industry should be viewed as an important sector for climate action. Moreover, the potential for substantial GHG emissions reduction through the adoption of improved practices seems very realistic. There may also be additional opportunities for GHG emissions reduction through the development of organic tea cultivation systems.

This Themed Section aims to increase understanding of how the idea of climate change, and the policies and actions that spring from it, travel beyond their origins in natural sciences to meet different political arenas in the developing world. It takes a discursive approach whereby climate change is not just a set of physical processes but also a series of messages, narratives and policy prescriptions. The articles are mostly case study-based and focus on sub-Saharan Africa and Small Island Developing States (SIDS). They are organised around three interlinked themes. The first theme concerns the processes of rapid technicalisation and professionalisation of the climate change ‘industry’, which have sustantially narrowed the boundaries of what can be viewed as a legitimate social response to the problem of global warming. The second theme deals with the ideological effects of the climate change industry, which is ‘depoliticisation’, in this case the deflection of attention away from underlying political conditions of vulnerability and exploitation towards the nature of the physical hazard itself. The third theme concerns the institutional effects of an insufficiently socialised idea of climate change, which is the maintenance of existing relations of power or their reconfiguration in favour of the already powerful. Overall, the articles suggest that greater scrutiny of the discursive and political dimensions of mitigation and adaptation activities is required. In particular, greater attention should be directed towards the policy consequences that governments and donors construct as a result of their framing and rendition of climate change issues.

Mitigating Curtailment and Carbon Emissions through Load Migration between Data Centers

Is demand-side management environmentally beneficial? Analyzing the greenhouse gas emissions due to load shifting in electric power systems

The potential challenge for the effective GHG emissions mitigation of urban energy consumption: A case study of Macau

Tax revenue is one of the essential means through which the government controls the macroeconomy and plays a vital role in promoting environmental protection and sustainable development. This paper explores the adoption of green, carbon and environmental taxation in Nigeria: revenue generation and economic benefits perspectives. There is an uncertainty about the public acceptance of these taxes and subsequent difficulty in predicting the rate at which the pollution will fall if environmental taxes are implemented, it becomes expensive for governments to pursue environmental targets and thereby makes it difficult for firms and households to plan investment, production, and consumption activities. Regardless of this, it can be seen that environmental taxes are slowly gaining momentum in Nigeria. The main challenge is to design policy objectives and their instruments in such a way that the social costs of any inefficiency are minimized and a fair distribution of the burden are ensured. It is pointed out that Nigeria should introduce and develop the scope of taxation and adopt the method of "green tax" to cultivate taxpayers' green awareness. Thus, the policy framework needs to be systematically analysed for the successful design and implementation of environmental taxes. In conclusion, what can be said is that though the system of environmental taxation has turned quite a few heads in the direction of sustainable development in Nigeria, it is high time that a system of Green Tax is popularized in order to keep up with the global standards of environment protection.

Cities in Nigeria are generally characterized by poor drainage and are therefore subject to flooding. Particularly affected are cities like Lagos, Ibadan, Aba, Calabar, Yenagoa, etc. An estimated 25 million people or 28% of Nigeria’s population live in the coastal area and are at risk from flooding. To this end, environmental taxes have been proposed to address a wide range of issues including waste disposal, water pollution and air emissions. This study looked at environmental tax, and how it can be used as a tool for flood reduction in Nigeria. The research covers the local governments which are majorly affected by flood in Lagos state and copies of questionnaire were administered to the selected samples who are residents. The Spearman Rank Order Correlation which is a non-parametric test was used to measure the degree of association between the dependent and the independent variables. The findings revealed that there is a moderate positive correlation (Rs=.398, p<.005) between the imposition of environmental tax on nylon packages and the reduction of flood and it is significant at 0.01. The study concludes that the implementation of environmental taxes on nylon packaging companies will lead to a reduction in the use of nylon as the major packaging system in Nigeria. The study therefore recommends that there should be a change in the packaging system in Nigeria as most of our products are made by nylon. The adoption of paper bags or cloth bag which has been adopted in developed countries especially in England should be emphasized.

China’s tourism economy has developed rapidly, which has promoted the further development of the social economy. However, in the course of development, it has also brought about certain tourism ecological environment problems. In order to develop the tourism economy more effectively, the collection and implementation of environmental taxes has become an effective means of economic regulation. Environmental tax has a positive impact on tourism economy and tourism eco-environmental effects. Under such a background, we will vigorously promote the complete environmental tax system, increase law enforcement, eco-environmental protection, eco-friendly tourism product construction, and ecological protection propaganda. Promote the harmonious development of the tourism economy and the tourism ecological environment, and realize the unification of the economic and ecological benefits of the tourism industry.

The purpose of this study is to examine how environmental taxation, green growth, and eco-innovations contribute to a more sustainable environment. This study examines the influence of green growth, environmental taxes, and eco-innovations on carbon dioxide emissions in 26 environmentally responsive European Union (EU) countries from 2000 to 2020. The analysis was conducted using the second-generation panel unit root test, cross-sectional dependence, panel cointegration, and panel quantile regression. Theoretical and empirical research has demonstrated that both linear and non-linear green growth strategies are effective in reducing CO2 emissions. There is evidence that CO2 emissions can be reduced through the implementation of environmental taxes, eco-innovations, the use of renewable energy sources, and enhanced energy efficiency. In contrast, economic growth has a positive effect on carbon emissions, and its square term verifies the environmental Kuznets curve. Nevertheless, our research findings provide empirical support for the hypothesis that sustainable development contributes to the maintenance of stringent environmental standards. For the sampled countries, the study's findings have significant policy implications. These results encourage governments to prioritize green growth over traditional economic growth and to encourage eco-innovations in renewable energy technology.