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Market Instruments for a Sustainable Economy: Environmental Fiscal Policy and Manifest Divergences
Author(s) -
VillarRubio Elena,
HueteMorales MaríaDolores
Publication year - 2017
Publication title -
review of policy research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.832
H-Index - 45
eISSN - 1541-1338
pISSN - 1541-132X
DOI - 10.1111/ropr.12211
Subject(s) - convergence (economics) , kyoto protocol , economics , tax revenue , revenue , environmental policy , sustainable development , environmental tax , unit (ring theory) , international economics , public economics , macroeconomics , natural resource economics , tax reform , finance , political science , climate change , ecology , mathematics education , mathematics , law , biology
The introduction of environmental taxation policies had reached most European countries by the late 1990s. The pricing of activities considered harmful to the environment has given rise to the design of various economic instruments, such as environmental taxes, aimed at promoting environmental responsibility and at enabling the Kyoto Protocol targets to be met, and at the same time generating a marked increase in tax revenues. The aim of this article is to examine whether convergence in environmental taxation has taken place among 27 EU countries, doing so by analyzing time series and applying unit root tests. Our findings show there has been no such convergence, overall, despite the existence of groups of countries with common patterns of behavior.