Environmental Taxation and CO&lt;sub&gt;2&lt;/sub&gt; Emission Management

Cordelia Onyinyechi Omodero,Josephine Adanma Nmesirionye,Eke Onyekachi Abaa,Michah Chukwuemeka Okafor

doi:10.13189/eer.2022.100101

Abstract

Due to the obvious ozone layer depletion and continual contamination of the air and water, environmental protection has become a global priority. In an environmentally challenged country like Nigeria, the difficulty of having clean water and air is a significant cause for environmental taxes to become unavoidable. Although these taxes are presently levied in the form of fines for gas flaring, gas exploration tax, and petroleum profit tax, which are 85 percent more than the standard business income tax of 30 percent of revenues. The argument is based on the fact that the business operations of the oil and gas sector cause a significant degree of pollution to the environment. As a result, this research looks at the influence of environmental taxes on CO2 emission control in Nigeria. The research spans the years 2010 to 2020. According to the regression findings, the gas exploration tax has an inconsequential negative influence on CO2 emission management, but the petroleum profit tax has a negligible positive impact on CO2 emission control. On the other side, the cost of environmental preservation has a large beneficial influence on CO2 emission control. As a result, the study suggests the implementation of more suitable environmental taxes and levies in order to lower pollution levels in Nigeria.

Highlights

Environmental pollution is a multidimensional and complicated problem that may have significant environmental and economic effects, as well as jeopardize a country's security [1]
The goal of this study is to investigate the impact of environmental taxation on CO2 emission control in Nigeria
Figures on environmental protection expenses are sourced from the Central Bank of Nigeria's Statistical Bulletin, whilst information on Petroleum Profits Tax and Gas Exploration Tax is derived from the Organization for Economic Cooperation and Development (OECD)

Summary

Introduction

Environmental pollution is a multidimensional and complicated problem that may have significant environmental and economic effects, as well as jeopardize a country's security [1]. Environmental policy and the conservation of living environments, aimed at reducing environmental burdens, have become a global issue and a component of national and international economic strategies [2]. The rapidly expanding population and economic activities cause an increase in environmental contamination globally, as well as increased attention to this issue [1]. They have progressively garnered greater attention to economic strategies in both rising and developing nations such as China, India, Indonesia, Thailand, Singapore, and Vietnam during the last few decades. According to Article 3 of the Treaty on European Union (EU), one of the primary priorities of the European Union is environmental protection. Article 191 of the Treaty on the Functioning of the European Union identifies fighting climate change as one of the European Union's goals

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Conclusion