Evaluating the effectiveness of environmental taxes: A Case study of carbon pricing in the UK as a tool to reducing Greenhouse Gases Emissions

This paper evaluated the effectiveness of environmental taxes and adopted a case study approach which used carbon pricing in the UK as a tool to reducing Greenhouse Gases Emissions. The objectives of the research are to determine the effect of carbon pricing on greenhouse gases emissions in the United Kingdom, evaluate how fossil energy depletion affect greenhouse gases emissions in the United Kingdom and ascertain the effect of total energy consumption from different energy mix on greenhouse gases emissions in the United Kingdom. The paper used an ex post facto research design and the estimated model was estimated using the ordinary least squares regression technique. The data were sourced from different sources and covered the period between 2010 and 2023. The findings of the study revealed that carbon pricing is an effective tool for reducing greenhouse gases emissions in the UK while renewable energy is also a significant tool for reducing greenhouse gases emissions. Based on these findings, the study recommends that the government should consider increasing the carbon price incrementally over time to ensure that it continues to effectively discourage high-emission activities.