Journal Press India^®

Author Details ( * ) denotes Corresponding author

Environmental taxation has emerged as a promising policy tool to combat the pressing challenge of carbon emissions and address the adverse impacts of climate change. This study presents a comprehensive analysis of environmental taxation in the G20 nations, a diverse group of major economies that collectively contribute to a significant share of global greenhouse gas emissions. The objective of this research is to assess the role of environmental taxation in influencing carbon emission levels across G20 countries. To achieve this, review of the literature on environmental taxation, and carbon emission reduction strategies in each G20 nation was conducted. Additionally, data from international databases, governmental reports, and academic studies were analysed and Johansen co-integration test was applied to test the hypothesis. It was found that environment taxation is important variable to manage CO2 emissions and to focus on sustainable growth of the nations. The findings of this research provide valuable insights for policymakers seeking to enhance the effectiveness of environmental taxation measures in their respective countries. By identifying successful policy approaches and lessons learned from G20 nations, this study contributes to a deeper understanding of how environmental taxation can play a pivotal role in addressing carbon emissions and advancing global efforts to combat climate change.

Keywords

Environmental taxation; G20; Carbon emissions

1. Bashir, M. F., MA, B., Shahbaz, M., Shahzad, U., & Vo, X. V. (2021). Unveiling the heterogeneous impacts of environmental taxes on energy consumption and energy intensity: Empirical evidence from OECD countries. Energy, 226. Retrieved from https://doi.org/10.1016/j.energy.2021.120366
2. Chien, F., Sadiq, M., Nawaz, M. A., Hussain, M. S., Tran, T. D., & Le Thanh, T. (2021). A step toward reducing air pollution in top Asian economies: The role of green energy, eco-innovation, and environmental taxes. Journal of Environmental Management, 297. Retrieved from https://doi.org/10.1016/j.jenvman.2021.113420
3. Crippa, M., Guizzardi, D., Solazzo, E., Muntean, M., Schaaf, E., Monforti-Ferrario, F., Banja, M., Olivier, J.G.J., Grassi, G., Rossi, S., Vignati, E. (2021). GHG emissions of all world countries, EUR 30831 EN, Publications Office of the European Union, Luxembourg, 2021. Retrieved from doi:10.2760/173513
4. Di Cosmo, V., & Hyland, M. (2013). Carbon tax scenarios and their effects on the Irish energy sector. Energy Policy, 59, 404-414. Retrieved from https://doi.org/10.1016/j.enpol.2013.03.055
5. Doğan, B., Chu, L. K., Ghosh, S., Diep Truong, H. H., & Balsalobre-Lorente, D. (2022). How environmental taxes and carbon emissions are related in the G7 economies? Renewable Energy, 187, 645–656. Retrieved from https://doi.org/10.1016/j.renene.2022.01.077
6. Hao, L. N., Umar, M., Khan, Z., & Ali, W. (2021). Green growth and low carbon emission in G7 countries: how critical the network of environmental taxes, renewable energy and human capital is? Science of the Total Environment, 752, 141853.
7. Nakata, T., & Lamont, A. (2001). Analysis of the impacts of carbon taxes on energy systems in Japan. Energy Policy, 29(2), 159–166. Retrieved from https://doi.org/10.1016/S0301-4215(00)00104-X
8. OECD. (2011). Environmental taxation a guide for policy makers.
9. OECD. (2023). Policy Instruments for the Environment Database. Retrieved from https://www.oecd.org/environment/indicators-modelling-outlooks/policy-instruments-for-environment-database/
10. Shahzad, U. (2020). Environmental taxes, energy consumption, and environmental quality: Theoretical survey with policy implications. Environmental Science and Pollution Research, 27(20), 24848-24862.
11. Tamazian, A., Chousa, J. P., & Vadlamannati, K. C. (2009). Does higher economic and financial development lead to environmental degradation: Evidence from BRIC countries. Energy Policy, 37(1), 246–253. Retrieved from https://doi.org/10.1016/j.enpol.2008.08.025
12. Wier, M., Birr-Pedersen, K., Jacobsen, H. K., & Klok, J. (2005). Are CO₂ taxes regressive? Evidence from the Danish experience. Ecological Economics, 52(2), 239–251. Retrieved from  https://doi.org/10.1016/j.ecolecon.2004.08.005
13. Wissema, W., & Dellink, R. (2007). CGE analysis of the impact of a carbon energy tax on the Irish Economy. Ecological Economics, 61(4), 671-683.
14. Yunzhao, L. (2022). Modelling the role of eco innovation, renewable energy, and environmental taxes in carbon emissions reduction in E−7 economies: evidence from advance panel estimations. Renewable Energy, 190, 309-318. Retrieved from https://doi.org/10.1016/j.renene.2022.03.119