Environmental taxes and economic growth: evidence from panel causality tests

Abdullah, Sabah and Morley, Bruce (2014) Environmental taxes and economic growth: evidence from panel causality tests. Energy Economics, 42 27-33. doi:10.1016/j.eneco.2013.11.013

Author Abdullah, Sabah
Morley, Bruce
Title Environmental taxes and economic growth: evidence from panel causality tests
Journal name Energy Economics   Check publisher's open access policy
ISSN 0140-9883
Publication date 2014-03
Year available 2013
Sub-type Article (original research)
DOI 10.1016/j.eneco.2013.11.013
Open Access Status
Volume 42
Start page 27
End page 33
Total pages 7
Place of publication Amsterdam, Netherlands
Publisher Elsevier
Language eng
Abstract The aim of this study is to determine the causal relationship between environmental taxes and economic growth, using different measures of environmental taxes with GDP as well as adjusted net savings. A panel of European countries and a separate panel of OECD countries are used from 1995 to 2006 and the standard Granger non-causality approach is applied. The results suggest some evidence of long-run causality running from economic growth to increased revenue from the environmental taxes, with also some evidence of short-run causality in the reverse direction. The inclusion of population and a proxy for economic subsidies had little effect on the long-run relationship, although the proxy for subsidies did have some short-run effect on growth.
Keyword Economic growth
Environmental taxes
Granger causality
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status Non-UQ
Additional Notes Available online 1 December 2013

Document type: Journal Article
Sub-type: Article (original research)
Collections: Non HERDC
School of Biological Sciences Publications
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Citation counts: TR Web of Science Citation Count  Cited 6 times in Thomson Reuters Web of Science Article | Citations
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Created: Wed, 27 Aug 2014, 16:30:27 EST by Gail Walter on behalf of School of Biological Sciences