Energy Tax Research Articles

Do Emission Trading Systems, Green Technology, and Environmental Governance Matter for Environmental Quality? Evidence from the European Union

This study investigates how emission trading systems can diminish the ecological footprint in the European Union bloc by considering the contribution of eco-friendly technology and ecological governance through another market-based intervention (i.e., environmental tax). Using PQARDL in the 26 EU members for data during 2011–2021, the study demonstrates that carbon pricing emission trading systems successfully reduce emissions in medium and upper quantiles but have little influence on lower quantiles. As businesses and consumers face higher costs for carbon-intensive activities, they are encouraged to adopt cleaner technologies and more sustainable practices. Over time, this shift decreases overall carbon emissions and resource consumption, which helps lower ecological pressure. Additionally, Europe's robust regulatory framework and commitment to climate goals ensure that carbon pricing is enforced consistently, further amplifying its positive environmental impact. Eco-friendly technology innovation appears to be a powerful tool for achieving rapid environmental advantages, leading to a considerable reduction in environmental footprint across various levels. Climate-smart patents can significantly curb emissions within the ecosystem and help balance the economy and the environment. Environmental taxes work alongside carbon pricing and green patents to incentivize individuals and corporations to adopt more sustainable practices in the 26 EU members. By unraveling the multifaceted relationships underpinning emission trading systems, renewable energy, green patents, and environmental tax, this study provides actionable insights to guide strategic decisions and policy formulations to reduce the ecological footprint.

Performance analysis of underwater wireless sensor networks using Reinforcement Learning

This article presents a novel routing protocol named DROR, specifically tailored for underwater wireless sensor networks (UWSNs) to tackle the challenge of void regions. DROR integrates Reinforcement Learning (RL) and Opportunistic Routing (OR) in a recipient-oriented approach, considering the energy limitations and the unique underwater setting. It incorporates a mechanism for void rehabilitation, allowing packets to circumvent void nodes and maintain continuous moving for dependable transmission. Furthermore, a dynamic scheduling strategy based on relative Q-values ensures proficient packet forwarding along the most efficient routing path. Simulation outcomes illustrate the efficacy of the suggested protocol concerning delay, PDR, and energy tax in UWSNs with varying Range, Depths, Packet sizes, and moving radius.

Þarfir netsins

Sú fallvatnsorka sem seld hefur verið til stóriðju hefur skilað óverulegum hagnaði og fyrirséð er að hún mun ekki skila verulegum hagnaði nema dregið verði úr skuldsetningu raforkufyrirtækjanna. Söluverðið er þekkt og að hluta til fast. Væntingar um að stóriðja verði leið til að styrkja iðnað í landinu og auka fjölbreytni útflutnings hafa snúist upp í andhverfu sína. Stóriðjugeirinn skapar ekki fjölda starfa og margföldunaráhrifin eru ekki mikil. Þjóðhagslseg áhrif eru mest á byggingartíma virkjananna. Niðurstaðan er að virkjun fallvatna hefur skilað litlu; orkusölu til fimm fjölþjóðafyrirtækja og óverulegum skatttekjum, utan tímabundins orkuskatts sem nú hefur verið aflagður. Fræðileg nálgun er að mestu sótt til Max Weber; annars vegar tilgátunnar um yfirburði regluveldisins, læsingu ákvarðanatöku í járnbúr, og hins vegar um að markleitin skynsemi, verkfærnin, geti umpólast þannig að leiðin verði að markmiði. Þannig hefur virkjun og orkuveita orðið að sérstakri atvinnugrein sem hefur eigin vöxt að markmiði undir yfirskini arðsemi. Yfirlýst markmið um samfélagslega ábyrgð, skyldur við nærsamfélagið og ábyrga umgengni við náttúruna eru löguð að fyrirætlunum og framkvæmd, þ.e. "heildsölu á raforku til stórnotenda innan rammaáætlunar.

The role of environmental tax in guiding global climate policies to mitigate climate changes in European region

AbstractThe purpose of this study is to perform a practical inquiry into the influence of environmental tax laws on the execution of climate‐related financial policies. Our research will assess the effectiveness of environmental tax measures in 23 European countries from 2011 to 2020. The panel‐corrected standard error (PCSE) model and the feasible generalized least squares (FGLS) model are used in the empirical examination of the link between environmental tax laws and the implementation of climate‐related financial measures. This study is based on panel data with cross‐sectional dependence. The results of our estimation highlight the need to improve policy effectiveness by using all four ecological tax indicators. These include total environmental tax revenue, energy tax revenue, pollution and resource tax revenue, and transportation tax revenue. Furthermore, we provide actual evidence clarifying the process by which the implementation of environmental tax policies improves the efficacy of climate‐related financial policies in the short term as well as the long term. According to the findings, a third of environmental tax policy indicators have a long‐term effect on the implementation of climate‐related financial measures, with no short‐term effects seen. Our findings are critical for economists and policy‐makers who support the environmental tax as an effective tool to promote a country's climate policy implementations.

Assessment of the Efficiency of the Financial Mechanism of Environmental Management

Abstract In recent decades, cataclysmic events, deterioration of air and water quality, and loss of biodiversity have forced us to look for ways to save nature. One of the ways to solve the problems is to ensure rational environmental management, which is possible by establishing an effective balance between consumption and compensation by creating an effective financial mechanism. The purpose of the study is to assess the efficiency of the current financial mechanism for environmental management in Ukraine and to determine the prospects for its improvement. The study uses analysis, synthesis, specification, systematization, and generalization. The graphical method was used to assess environmental taxes, and mathematical modelling was used to analyze the dependence of emissions on direct costs and capital investments in air protection and climate change. Environmental taxes in Ukraine are an ineffective instrument of the financial mechanism of environmental management. Their share in the structure of domestic GDP is lower than the share in the EU. The author suggests ways to improve them: to replace the CO2 tax with an energy tax; to cancel the tax-free limit of 500.000 tons of CO2 emissions per year; to change the structure of tax distribution; to introduce tax rebates. The correlation and regression analysis of the dependence of air pollutant emissions on current expenditures and capital investments in air protection and climate change issues showed the existence of a feedback loop. Investment support for environmental management should be provided from various sources in the following areas: national, local and international finances - primarily for the restoration of air, water and contaminated areas; own funds and international investments - for the modernization and greening of production.

Exploring the impact of renewable energy, green taxes and trade openness on carbon neutrality: New insights from BRICS countries

The world faces two significant challenges: promoting sustainable economic growth and reaching carbon neutrality. In BRICS countries, these challenges are shaped by renewable energy, green taxes, and trade openness. These countries were selected for their strategic location and the abundance of relevant data collected over the period of 1990–2021, providing a distinctive window into the energy and economic dynamics of the area. The link between renewable energy consumption, green taxes, trade openness, and natural resources and their effects on carbon emissions in BRICS countries is examined in this study using the Fully Modified Ordinary Least Square Method (FMOLS) estimator and the Drisc Kraay estimator for the robustness test. The findings indicate that using renewable energy and green taxes primarily contribute to reducing emissions, particularly at higher emissions levels. The study reveals that various factors, namely financial globalization, trade openness, efficient resource management, and population growth, substantially impact carbon neutrality. Population growth positively impacts carbon neutrality, while using renewable energy sources mitigates it. Furthermore, the empirical findings show a statistically significant positive association between financial globalization, efficient resource management, and carbon neutrality in BRICS nations. Therefore, it is necessary to implement an integrated ecological governance strategy to control and direct financial resources towards sustainable development and green energy.

Navigating the role of transport and energy taxes on carbon neutrality in Poland: A Fourier-based approach

As part of the Green Deal, European countries have set themselves the target of halving carbon emissions by 2050. Environmental taxes are a powerful tool of environmental regulations to minimize carbon emissions, and they can play a significant role in ecological development. Poland is one of the countries that generates the most environmental tax revenues among European countries. In this context, the study analyzes the impact of energy and transport taxes on carbon emissions for Poland within the framework of the environmental Kuznets curve (EKC). Accordingly, the study applies the Fourier autoregressive distributed lag approach to the data for the period 1995/Q1–2022/Q4. The results demonstrate that (i) the EKC hypothesis is valid for Poland, (ii) energy taxes support carbon neutrality targets, and (iii) transport taxes have no impact on carbon emissions. Compatible with the results, the study suggests that the Polish government should prioritize energy taxes over transport taxes and expand them to minimize carbon emissions.

Extreme weather exposure and corporate carbon emissions management: Evidence from forty countries

Utilizing survey data for firms from 40 countries, we explore the impact of extreme weather exposure on corporate carbon emissions management. Our findings indicate that firms manage their carbon emissions better if they have suffered losses due to extreme weather events. These results persist after considering endogeneity concerns, including placebo tests, the Heckman two-stage method, propensity score matching, the instrumental variables approach, and other robustness tests. Cross-sectional analyses reveal that this impact is more pronounced for firms located in developed countries and in countries with superior climate protection and lower levels of carbon emissions. Furthermore, the effect of extreme weather exposure is more significant for firms with foreign ownership and political connections and those subject to an energy tax. Finally, improved management of carbon emissions accompanied by extreme weather exposure can lead to increased corporate capacity utilization and reduced production costs.

THE EFFECTS OF ENVIRONMENTAL TAXES ON CARBON EMISSIONS: A STUDY ON SELECT EU MEMBER STATES

This study investigates the effects that national income, public expenditures, research and development (R&D) investments, and environmental taxes (ET) have on carbon emissions. The variables of national income, the square of national income, public expenditures, R&D, total ET, transport taxes, and energy taxes are used in conjunction with carbon emission data for this analysis. Three distinct models are used herein: Model 1 employs the total ET, model 2 utilises transport taxes, and model 3 makes use of energy taxes. A Dumitrescu-Hurlin causality analysis was employed to investigate the relationship between the variables, which demonstrates that there was a Granger causality from national income, the square of national income, and public expenditures to carbon emissions. However, there was no Granger causality from R&D expenditures to carbon emissions. Finally, there was a one-way Granger causality relationship from total ET, transport taxes, and energy taxes used as ET to carbon emissions. Therefore, this study concludes that R&D investments are important for the development of environmentally friendly production structures and for increasing the importance of these structures in the economy. Finally, the findings emphasise that ET in particular can be effective in reducing carbon emissions within the framework of the Kyoto Protocol and the Paris Agreement

Impacts of Fintech and natural resources on environmental quality: The role of renewable energy and carbon taxes: A panel QARDL approach

AbstractThe world is currently suffering from a significant environmental crisis characterized by global warming, rising sea levels, foods, and droughts. This has adversely affected the poorest nations, resulting in increased occurrences of both droughts and flooding that impact their means of livelihood. In order to address this issue, countries globally need to develop policies that efficiently reduce environmental destruction and achieve zero carbon emissions. A number of empirical estimates were used in this study. The Friedman, Frees, and Pesaran tests are used to evaluate cross‐sectional dependence. Unit root tests, such as the augmented Dickey–Fuller test, are used to assess the stationarity of variables. The Pedroni test is used in co‐integration analysis to find the long‐term relationships between variables, and a novel Panel quantile auto‐regression distributed lag methodology to investigate both long‐term and short‐run dynamics across G‐17 countries spanning from 2000 to 2021. The results clarify the pivotal role of carbon taxes, technological innovation, and renewable energy consumption in reducing carbon dioxide (CO2) emissions, thereby enhancing environmental quality, while the sustained use of natural resources is harmful to environmental quality. Furthermore, the finding reveals that Fintech's association with CO2 emissions negatively impacts environmental quality. The study also demonstrates the efficacy of environmental taxes in reducing CO2 emissions across, supporting for higher carbon pricing as a viable policy tool for environmental protection.

GTR: GAN-Based Trusted Routing Algorithm for Underwater Wireless Sensor Networks.

The transmission environment of underwater wireless sensor networks is open, and important transmission data can be easily intercepted, interfered with, and tampered with by malicious nodes. Malicious nodes can be mixed in the network and are difficult to distinguish, especially in time-varying underwater environments. To address this issue, this article proposes a GAN-based trusted routing algorithm (GTR). GTR defines the trust feature attributes and trust evaluation matrix of underwater network nodes, constructs the trust evaluation model based on a generative adversarial network (GAN), and achieves malicious node detection by establishing a trust feature profile of a trusted node, which improves the detection performance for malicious nodes in underwater networks under unlabeled and imbalanced training data conditions. GTR combines the trust evaluation algorithm with the adaptive routing algorithm based on Q-Learning to provide an optimal trusted data forwarding route for underwater network applications, improving the security, reliability, and efficiency of data forwarding in underwater networks. GTR relies on the trust feature profile of trusted nodes to distinguish malicious nodes and can adaptively select the forwarding route based on the status of trusted candidate next-hop nodes, which enables GTR to better cope with the changing underwater transmission environment and more accurately detect malicious nodes, especially unknown malicious node intrusions, compared to baseline algorithms. Simulation experiments showed that, compared to baseline algorithms, GTR can provide a better malicious node detection performance and data forwarding performance. Under the condition of 15% malicious nodes and 10% unknown malicious nodes mixed in, the detection rate of malicious nodes by the underwater network configured with GTR increased by 5.4%, the error detection rate decreased by 36.4%, the packet delivery rate increased by 11.0%, the energy tax decreased by 11.4%, and the network throughput increased by 20.4%.

Hero or Devil: A comparison of different carbon tax policies for China

A carbon tax is a promising environmental regulation. Given its heavy industrial base and substantial reliance on coal, China is under immense pressure to transition to greener energy systems. This paper enriches Annicchiarico and Di Dio’s (2015) dynamic general equilibrium model for environmental policy analysis by integrating a Schumpeterian innovation-driven clean energy transition that endogenizes the carbon intensity of energy inputs. We analyze the environmental, energy, economic, and social impacts of various hypothetical carbon taxes – including an energy excise tax on households, an emission tax on general producers, and an energy tax on energy suppliers – across different tax rates and subsidy strategies for both short-term and long-term effects. We show that: (i) by internalizing carbon intensity, a carbon tax can achieve a “quadruple dividend”, encompassing emission reduction, energy transition, economic growth, and welfare enhancement; (ii) the optimal carbon tax strategy, integrating both an emission tax and an energy tax, directs revenue towards supporting the clean energy transition; (iii) under a single environmental regime, a composite carbon tax exceeding 250 CNY/ton is optimal, while under multiple regimes, 25 CNY/ton suffices to reduce carbon emissions per unit of output by over 90%; (iv) despite their benefits, all carbon taxes compel firms to reorganize production, inevitably risking unemployment.

Causal Relatıonshıp Between Energy Taxes and Green Innovatıon in G-7 Countrıes: New Evıdence Based on Fourıer Functıons

This study explores the link between energy taxes and green innovation in G-7 countries from 1994 to 2019, using a novel Panel Fourier causality test which does not require determining the number, dates, and forms of breaks in advance. The study found that energy taxes cause green innovation in Canada, France, Italy, and the United Kingdom. The results suggest that energy taxes play a vital role in boosting environmental technologies in G-7 countries.

Energy Tax Exemptions and Industrial Production

Abstract This paper investigates the impact of a large electricity tax exemption on production levels, employment and input choices in the German manufacturing industry. For two policy designs, we show that exempted plants increase their electricity use. This effect is larger under a notched exemption policy, where passing an eligibility threshold yields infra-marginal benefits, compared to a policy without such benefits. We detect no significant impact of the exemptions on production levels, export shares and employment. Using counterfactual simulations, we document that notched policies substantially distort firms’ production input choices when financial stakes are high and compliance costs are low.

Do patents, renewable energies and energy taxes in the transport sector reduce transportation carbon emissions in the European Union?

ABSTRACT Transportation infrastructure plays a significant role in exacerbating climate change as it contributes to a substantial increase in carbon dioxide (CO2) emissions. The sole economic sector in which European countries have not succeeded in reducing greenhouse gas (GHG)emissions is the transportation industry. Therefore, reducing transport-related emissions is a primary focus of emphasis in the European Union’s efforts to meet its climate targets. Accordingly, this study analyzes the impact of renewable energy use, patent development, and energy taxes in the transport sector on the three different modes of transport-related emissions (aviation, road, and rail) in the 10 highest-income countries of the European Union over the period 2008–2020. The study uses the novel half-panel jackknife estimator for this analysis. The results of the estimation show that patents contribute to the reduction of CO2 emissions in aviation and rail transportation, while renewable energies are only effective in rail transportation. In the context of road transportation, energy taxes are effective in mitigating CO2 emissions. Based on these findings, it is recommended that European Union policymakers promote the use of electric vehicles and eco- friendly means of transportation in road transport through energy taxes, increase the use of renewable energy sources such as biodiesel in rail transport, and reduce CO2 emissions by supporting patents that promote green innovations in the aviation sector.

Mineral resource management for a sustainable future: Unraveling the role of energy tax in driving green technologies and environmental quality

Effective mineral resource management balances economic growth with environmental sustainability and ensures long-term resource availability. The effectiveness of energy taxes in achieving carbon reduction has been a subject of considerable debate in sustainable development. Environmental taxation (ERT) is expected to promote decreasing carbon emissions by incentivizing the development of green technical advancements, which are crucial for achieving environmental sustainability. This research expands the current discourse on sustainable theory, specifically examining the influence of green energy, energy taxes, and socioeconomic factors on Chile's greenhouse gas (GHG) emissions. This analysis is based on quarterly data from 1994 to 2021. The nonlinearity test findings were supported using nonlinear approaches, such as quantile-on-quantile regression (QQR), nonparametric quantile causality analysis, and time-varying nonparametric causality evaluation. The QQR study findings indicate that the combination of green technology, green energy, energy taxes, and socioeconomic factors leads to decreased greenhouse gas (GHG) emissions in Chile, as shown across most quantiles. Furthermore, the dynamic nonparametric causality analysis results revealed substantial causative connections between green technology, green energy, energy taxes, and socioeconomic situations at different time intervals and levels of measurement. These findings serve as the basis for initiating policies.

Constructing and implementing a green taxation system in China under the dual-carbon target

Reducing carbon dioxide emissions and achieving carbon neutrality have become hot topics of global concern. China has elevated its response to climate change to a national strategic level, where the green tax system plays a crucial role in implementing the dual-carbon strategy. This paper systematically analyzes the green tax systems of the Organisation for Economic Co-operation and Development (OECD)—encompassing environmental pollution taxes, energy taxes, vehicle and transportation taxes, and resource taxes. Based on this analysis, it proposes that China should establish a multifaceted green tax system including environmental protection tax, resource tax, and farmland occupation tax. Furthermore, it suggests an integrated approach combining systematic tax incentives such as corporate income tax, value-added tax, consumption tax, and vehicle purchase tax. This comprehensive green taxation framework, covering development, production, consumption, and emission stages, aims to drive high-quality green economic and social development through both tax incentives and restrictions, implementing a “dual-driving” mechanism. This study provides a basic framework and practical path for building a green tax system in China, especially studying the sources of different green taxes and their interrelationships, which enriches the theoretical and practical values related to taxation.

Do Energy Consumption and CO2 Emissions Significantly Influence Green Tax Levels in European Countries?

In this article, we analyze the correlation between GDP/capita variation, primary and renewable energy consumption and greenhouse gas emissions on the one hand, and green taxes on the other. Green taxes are the main instruments used to limit activities that have a negative impact on the environment. These consist of taxes paid by producers and/or consumers for any activity that generates pollution. The results of dynamic regressions, validated by the applied robustness tests, indicate a significant and positive correlation between primary energy consumption and total environmental taxes, respectively energy taxes. At the same time, this shows that variation in GDP/capita significantly and positively influences transport taxes and pollution taxes. In contrast, net greenhouse gas emissions and the supply, transformation and consumption of renewable sources and waste do not significantly influence the total green taxes and their components. This finding is useful to both academic research and government policies for the realistic substantiation of the levels of green tax revenues and for establishing appropriate measures meant to reduce CO2 emissions.

A review of US residential energy tax credits: distributional impacts, expenditures, and changes since 2006

A review of US residential energy tax credits: distributional impacts, expenditures, and changes since 2006

Carrots, Sticks, and the Evolution of U.S. Climate Policy

The Inflation Reduction Act (IRA), enacted by Congress in 2022, is the most significant federal investment in decarbonization in U.S. history. The law makes hundreds of billions of dollars available for clean energy tax credits, grants to state and local governments, and other financial incentives for public and private investments. The IRA’s focus on incentives, or “carrots,” marks a significant departure from the emphasis on prescriptive regulations and penalties, or “sticks,” that are prominent in federal and state climate policies that predate the IRA. This Article situates the IRA within the existing climate policy framework and explores the long-term impacts of the new law. The Article begins with an overview of regulations and tax incentives to reduce greenhouse gas emissions leading up to 2007. The Article then discusses the emphasis on pricing carbon through federal Cap-and-Trade legislation from 2003 to 2011, and the return to prescriptive regulation under the Clean Air Act when those federal bills failed. The Article contrasts these efforts with the positive financial incentives included in the IRA, tracking the evolution of the bill and the political and economic circumstances that created the policy window for Congress to pass such an impactful law. The Article concludes with a discussion of the lasting impacts of the IRA and the interplay between the existing policy instruments.